Nifty hits a new record, F&O rollovers signal momentum

livemint.com:

₹7,378 crore attracted bids worth a whopping ₹2.6 trillion. The Indian economy expanded 7.6% in the second quarter, Thursday’s data showed, beating expectations by a wide margin.

Meanwhile, exit polls for assembly elections suggested the Bharatiya Janata Party (BJP) might win Rajasthan and put up a strong fight in Madhya Pradesh. “The confluence of a blowout GDP print and exit polls giving BJP Rajasthan and calling a close contest in MP, while showing that a stronger Congress could lead the Opposition coalition for the national elections next year, with Chhattisgarh and Telangana in its pocket, reinforced the bulls who are waiting to buy every dip," said Nilesh Shah, managing director, Kotak Mahindra AMC.

“With expanding retail and HNI appetite on display during last week’s IPOs, and FPIs turning buyers, the momentum should continue," Shah said. The previous highs for Nifty and Sensex stood at 20,222.45 and 67,927.23 on 15 September.

The market has since corrected from those levels, with the Nifty falling 6.8% to a low of 18,837.85 through 26 October on selling by foreign portfolio investors (FPIs), before picking up on strong retail buying and the resumption of foreign inflows. The small-cap and mid-cap benchmarks hit fresh highs for the second straight session—the NSE Midcap 150 made a fresh high of 16,127.95 while the Nifty Smallcap 250 surged to 13,381.20.

Thursday’s trading session, which coincided with the expiry of the November series of futures and options, indicated a continuation of the bullish momentum, with marketwide rollovers hitting a historic high of ₹3.03 trillion, Nuvama Research said. Rollovers involve investors and traders carrying forward their stock futures contracts to the next month, which then