Markets on bullback, no pullback from 80,000 milestone

Sensex hit 80,000, led by TCS, Infosys, and banks like Kotak Mahindra. Nifty reached 24,302.15, driven by pre-budget CapEx expectations. Markets show bull indications, driven by private banks and tech. Confidence from policy consistency, expected social welfare spending, and strong investor sentiment; budget is likely in July.

The benchmark Sensex extended its rally on Thursday, closing above 80,000 for the first time, setting new records led by tech and bank stocks. NSE’s Nifty also made fresh new highs during the day, fuelled by budget expectations of increased capital expenditure and other growth-oriented policy measures.

The BSE Sensex hit 80,000 intraday on Wednesday before ending below that mark.It rose 62.87 points, or 0.08%, to end at 80,049.67, having risen to an intraday record of 80,392.64 on Thursday. The NSE Nifty rose 15.65 points or 0.06% to close at 24,302.15, after hitting a lifeti me high of 24,401 during the day.

“We can see a pre-budget runup in the Indian markets, with participation seen across stocks and sectors. These are classic signs of a bull market,” said Sriram Velayudhan, senior vice-president at IIFL Securities.

The budget is likely in the fourth week of July.

BSE’s healthcare and IT indices led the day’s gains — up 1.17% and 1.12%, respectively, at close. Tech companies HCL Technologies, Tata Consultancy Services (TCS) and Infosys were some of the top gainers, along with lenders such as ICICI Bank and Kotak Mahindra Bank, among other heavyweights on the BSE.

“We are seeing a rally in the Indian markets as people remain confident,” said Varun Saboo, head of equities at Anand Rathi Shares and Stock Brokers.

Strong

“Continuity in the government (is) leading to — visibility on nation building, capex, infra, etc — which leads to strong over next several years,” said Saboo. “There are also expectations of some more social welfare spending in the budget, with bigger state elections nearing.” Liquidity and flows are also strong, adding to , he said.

On the BSE, 2,185 shares advanced and 1,742 declined during Thursday.

On the , Nifty’s momentum remains strong, with near-term support at 24,000 levels. “Nifty has been steadily on the rise from 23,350 levels, making new highs with the undertone maintained very bullish, and anticipating further rise for the next targets of 24,500 and 24,900 levels in the coming days,” said Vaishali Parekh, vice-president of technical research at Prabhudas Lilladher.

With indicators maintaining strength, there is scope for further upside, she said.
The Nifty’s Volatility Index (VIX), the market’s fear gauge, fell 2.65% to 12.86 level, indicating comfort among investors.

Markets on bullback, no pullback from 80,000 milestone

“We remain bullish on and expect at least a 15% CAGR for the next three to five years, unless any unforeseen event happens,” said Saboo. The market could see some short quick corrections, which investors should use as buying opportunities, he said.

Velayudhan said private banks, tech, pharma and other large caps like are showing strength. The Nifty Midcap 150 gained 0.68% and the Nifty Small-cap 250 rose 0.56% on Thursday.

bought shares worth a net ₹2,575.85 crore. Domestic institutions were sellers to the tune of ₹2,375.18 crore.

Elsewhere in Asia, China declined 0.83%, Hong Kong rose 0.28%, South Korea gained 1.11% and Taiwan rose 1.51%. The pan-Europe index Stoxx 600 was up 0.6% at the time of going to print.

Source: Stocks-Markets-Economic Times