Mumbai, Nov 10 (SocialNews.XYZ) Massive foreign fund inflows on the back of accelerated vaccine development along with clarity on US presidential election results and a fast-paced economic recovery lifted key Indian equity markets to touch new record highs on Tuesday.
Accordingly, the S&P BSE Sensex crossed the psychological 43,000-mark for the first time. Similarly, the Nifty50 on the National Stock Exchange crossed the 12,600-mark.
The buying sentiment got a boost on news that pharmaceutical major Pfizer's experimental Covid-19 vaccine was more than 90 per cent effective based on initial trial results.
Besides, hopes of a bigger stimulus in the US and healthy domestic Q2 earnings results also supported the northward movement.
Globally, all major indices made healthy gains with Japan's Nikkei 225 rising to a new 29-year high.
Closer at home, leads made by Bihar's ruling NDA coalition in the Assembly elections generated overall feel good factor.
FII inflows on the BSE, the NSE and the MSEI in the capital market segment stood at Rs 5,627.32 crore on Tuesday. The inflows had stood at Rs 4,548.39 crore in Monday.
Last Friday, the markets received an inflow of Rs 4,869.87 crore and Rs 5,368.31 crore on Thursday.
Among sectors, healthy buying was witnessed in banking, finance and capital goods stocks, while IT and healthcare stocks witnessed a sell-off.
Consequently, the S&P BSE Sensex closed at 43,277.65, higher by 680.22 points, or 1.60 per cent, from the previous close of 42,597.43.
It also recorded an all-time intra-day high of 43,316.44 points.
The Nifty50 on the National Stock Exchange (NSE) settled at its record closing level of 12,631.10, higher by 170.05 points, or 1.36 per cent, from its previous close.
"Indian markets shot up on positive overnight cues from global markets. Investors cheered as the trial of a Covid-19 vaccine developed by Pfizer Inc and BioNTech SE showed more than 90 per cent effectiveness," said Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities.
"Markets had closed at all-time highs yesterday and handsomely built on those gains in today's session. Today was the seventh consecutive session where benchmark indices have closed in the green. Banking stocks continued to outperform, as bank nifty made a massive 4 per cent up move today," he added.
Vakil cited that IT and pharmaceuticals stocks corrected, while stocks that have been beaten down by the severe disruption caused by the pandemic, such as those tied to travel and leisure, movie theaters, and theme parks, along with some retailers and restaurants led the markets higher.
According to Santosh Kumar Singh, Head of Research, MOAMC: "Markets are at an all-time high, however, they are driven by three news flows -- US elections uncertainty over, Covid vaccine may be much closer and India's recovery has been faster.
"Hence, the markets may not see big correction from here and in the medium to long term we may see the markets doing well. In my view, financials are still an area where good upside may be left with all the banks reporting better credit quality."
Source: IANS
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