The BSE Sensex touched 80,000 intraday on Wednesday and ended below that mark. It ended up 62.87 points, or 0.08%, at 80,049.67, having touched an intraday record of 80,392.64 on Thursday. The NSE Nifty closed up 15.65 points, or 0.06%, at 24,302.15, after hitting a lifetime high of 24,401 during the day.
“We may see a pre-budget runup in Indian markets, with shares and sectors witnessing participation. Sriram Velayudhan, Senior Vice President, IIFL Securities, said these are excellent signs of a bullish market.
The budget is likely to come in the fourth week of July.
BSE’s healthcare and IT indices led the day’s gains – 1.17% and 1.12%, respectively, at the close. Tech companies HCL Technologies, Tata Consultancy Services (TCS) and Infosys were some of the top gainers on the BSE along with lenders like ICICI Bank and Kotak Mahindra Bank among other heavyweights.
Varun Sabu, head of equity at Anand Rathi Shares and Stock Brokers, said, “We are seeing bullishness in Indian markets as people have confidence.
Nifty momentum strengthened
“Continuity (in) the government leads to policy continuity – visibility on nation building, capex, infra, etc. – which leads to strong earnings CAGR over the next few years,” Saboo said. “There are also expectations of some more social welfare spending in the budget, with major state elections around the corner.” Liquidity and flow are also strong, which boosts investor confidence, he said.
On BSE, 2,185 shares advanced and 1,742 declined during Thursday.
On the technical chart, Nifty’s momentum remains strong with near-term support at 24,000 level. “Nifty continues to rise from 23,350 level, undertone is making new highs with a lot of bullishness and more upside is expected for the next targets of 24,500 and 24,900 levels in the coming days,” said Vaishali Parekh. Research at Prabhudas Liladhar.
As the indicators remain strong, there is room to move forward, she said.
Nifty’s Volatility Index (VIX), a gauge of market fear, fell 2.65% to 12.86, reflecting comfort among investors.
“We are bullish on Indian equities and expect at least 15% CAGR for the next three to five years, unless something unexpected happens,” Saboo said. The market may see some short-lived corrections, which investors should use as buying opportunities, he said.
Velayudhan said other majors such as private banks, tech, pharma and Reliance Industries are showing strength. The Nifty Midcap 150 gained 0.68% and the Nifty Small-Cap 250 gained 0.56% on Thursday.
Foreign portfolio investors bought shares worth a net ₹ 2,575.85 crore. Domestic institutions had sales of ₹ 2,375.18 crore.
Elsewhere in Asia, China grew by 0.83%, Hong Kong by 0.28%, South Korea by 1.11% and Taiwan by 1.51%. The pan-Europe index Stoxx 600 was up 0.6% at press time.
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