On Monday, the Sensex Equity benchmark moved up 487 points to a new peak for life, tracking earnings in Infosys, HDFC Twins and HCL Tech amidst massive inflows of foreign funds.
Meanwhile, the revenues of top Indian companies are expected to rebound strongly in the third quarter after the coronavirus shock they suffered in the first months of the fiscal year.
However, following a record intra-day high of 49,303.79, the 30-share BSE index ended with 486.81 points, up 1 percent to 49,269.32.
On the Sensex chart, HCL Tech was the best gainer, with a steep climb of about 6 percent, followed by Infosys, HDFC, Bajaj Auto, Maruti, Tech Mahindra as well as the M&M. At the same time, Bajaj Finserv, Bajaj Finance, Reliance Industries, L&T, Kotak Bank and SBI were amongst the laggards.
According to Binod Modi, continuous improvement in COVID-19 recovery rates and the announcement of the vaccination process starting January 16 have reassured markets as well as the forecasts for a strong recovery in business earnings have led to a sustained rebound in key economic data, which could propel the market to new highs in the short term. He said, adding that domestic equities may also see a pre-budget recovery in the coming weeks, given general expectations of pro-growth measures.
Besides, the foreign portfolio investors (FPIs) were net capital market buyers as they bought shares worth 6,029.83 on Friday, based on foreign exchange data. Moreover, the Foreign Portfolio Investment (FPI) flow may continue to remain favourable given the status of the world economy, the position of the world central banks and the weakness of the dollar.
Lastly, the expanded Nifty NSE jumped 137.50 points or 0.96% to finish in 14484.75. It achieved a new intra-day maximum of 14998.20.