Sensex, Nifty Scale Fresh Record Highs
The domestic equity indices kicked off the week with stellar figures as the key indices marked fresh record highs at the market opening on Monday, June 28. The BSE Sensex opened higher by 130.67 points at 53055.71, and the Nifty was up 39.20 points at 15899.60.
The Covid-19 vaccination programme in the country, opening up of the economy with a decline in the number of cases, and the FPIs turning net buyers in June as they pumped in Rs 12,714 crore in the equity markets has improved the overall market sentiment and will drive the rally further too, said experts.
In the 30-share pack Sensex, 18 scrips marked gains at the opening, while 12 scrips started the day in the red. Shares of NTPC, Asian Paints, and Dr. Reddy's were the top gainers for the index adding over a per cent each in the morning trade.
Tracking the sectoral performance, except for IT, all other sectors started the week in the green. The PSU Bank sector gained the most led by shares of Bank of Baroda(+3.35 per cent), Canara Bank(+2.22 per cent), and Indian Bank (+2.15 per cent).
However, on the flipside, HDFC Life plunged over two per cent, while Titan Company, TCS, and IOC dipped nearly a per cent each at the market opening on Monday.
Moving ahead, analysts are bullish on the current market scenario and expect the momentum to sustain as the earnings season for FY21 ended on a strong note with Nifty EPS growing at 14.2 per cent YoY to INR539 – the highest since FY11 and they expect earnings momentum to accelerate in FY22 as the pace of vaccination has picked up and the economy opens up.
Siddhartha Khemka - Head of Retail Research at MOFSL, said, "We expect the long-term trend of the equity market to remain positive. The near-term direction of the market would be determined by commodity price-led inflation and its impact on interest rates."
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