Sensex ends 174 pts up, Nifty near 15,800; IT, pharma indices hit new peaks

Stock market updates: Market bulls rode the global momentum on Dalal Street on Friday, hitting new lifetime highs on the way. Bond yields in the US and Euro zone fell, with German 10-year yields set for their biggest fall this year, as investors bet on ultra-lose monetary policy to stay in place. 

Data published on Thursday showed that the US consumer price index swelled the most in a month since August 2008 at 5 per cent, following a 4.2 per cent rise in April. Yet global stocks hit record peaks as investors believed the Federal Reserve would continue to keep interest rates low to maintain the recovery pace. 

Moreover, the European Central Bank's statement that a policy tightening at this stage would be premature and would pose a risk to the ongoing economic recovery further lent support to the bullish sentiment on the Street.

The third factor adding to global rally was data from the UK which showed that Britain's economic output grew by 2.3 cent on a monthly basis in April, marking the fastest growth since July last year.

Globally, the Euro STOXX 600 added 0.3 per cent, London shares gained 0.6 per cent, while Paris climbed 0.4 per cent. In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.4 per cent.

Backed by firm global cues, the frontline S&P BSE Sensex hit an all-time-high of 52,641.5 while the broader Nifty50 index claimed 15,835.5-mark in morning deals. In the broader markets, the BSE MidCap and SmallCap indices, too, touched new peaks of 23,045 and 25,249 levels, respectively.

That said, a fag-end weakness in banking, realty, and FMCG counters dragged the markets off highs. By close, the BSE barometer was at 52,475 levels, up 174 points or 0.33 per cent while the 50-share Nifty index ended at 15,799 levels, up 62 points or 0.39 per cent.

The BSE MidCap index, on the other hand, closed 0.14 per cent up while the BSE SmallCap index ended 0.4 per cent higher.

Sectorally, the Nifty Metal index zoomed nearly 3 per cent on the NSE, followed by the Nifty IT and Pharma indices, up over 1 per cent higher each. On the downside, the Nifty Realty and PSU Bank indices slipped up to 1 per cent.

5:42 PM

TECH VIEW :: Ashis Biswas, Head of Technical Research at CapitalVia Global Research

The market witnessed some lackluster movement and an attempt to hold the support level around the Nifty 50 index level of 15800. Sustaining above 15800 levels, The market expects to gain momentum, leading to an upside projection of 15900 levels. The market expects 15900 and will act as resistance but technical factors are aligned to support the positive momentum to continue.

5:36 PM

TECH VIEW :: Market momentum is slowing down, but bias remains positive

The short term uptrend continued in the market after one day of recent dips. Though, momentum on the upside has slowed down, the market breadth remains intact and there is no indication of any profit booking or reversal emerging from the highs. The next upside levels to be watched around 16000 and immediate support is placed at 15690

Views by: Nagaraj Shetti, Technical Research  Analyst at HDFC Securities

5:25 PM

TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking

Technically, the index has been rising with Higher Highs & Higher Lows formation from the last couple of weeks. In the recent session, it has confirmed the Bullish Harami Candlestick pattern breakout on the daily chart. On an hourly chart, the index has settled above 9*21 HMA, which suggests a bullish move in the counter. Moreover, an oscillator Stochastic has also suggested positive crossover, which indicates bullish strength for the near term. At present, the nifty seems to have resistance at around 16000 levels while immediate support shifted up to 15650 levels.

5:12 PM

'Economic factors supportive of bull run'

FPIs have remained net buyers, month to date, to the tune of ~Rs.4769 cr underpinned by steady decline in Covid-19 cases in India and decent GST collections in April. We expect FPI flows to India, in the medium term, to remain strong as India is at a cusp of growth revival path. Interestingly, low interest rates, better exports outlook and revival in global economy is a good combination for India’s economic revival. Domestic demand revival will also be supported by upcoming festival season.

Views by: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

5:01 PM

Nifty hits record high but fails to hold gains. What's the next resistance zone?

Nifty rose for the fourth consecutive week, ending 0.82% higher for the week. Advance decline ratio fell again but remained above 1:1, as periodic profit taking by investors resulted in this. Overall sentiments remain up, inflation fears seem overdone and investors now await US Fed’s decision on June 16. 15889 could be the next resistance for the Nifty while 15705 could be the support.

Views by: Deepak Jasani, Head of Retail Research, HDFC Securities

4:47 PM

TECH VIEW :: Market is rallying on a slowed-down momentum,

Nifty50 index closed on a positive note touching new all time high. The index now seems to be finding the new range on the higher side as the dip up to 15560 on Wednesday was quickly bought into. Nifty index rallied more than 10% from the recent correction low and hence a mild pullback cannot be ruled out.  Given that the market is rallying on a slowed-down momentum, which can be properly visualized with the help of negative divergence in RSI on daily timeframe. Any sustained close below 15400 should be treated as RED signal for short term. As long as benchmark index is trading above 15400, we suggest traders maintain a bullish bias on market.

Views by: Nirali Shah, Head of Equity Research, Samco Securities 

4:29 PM

What will drive the markets next week?

Markets will first react to the IIP numbers in early trade on Monday. Going ahead, the progress of the vaccine drive and updates on the monsoon will be closely watched by the participants for cues. While the trend is bullish, the underperformance of the banking pack is certainly hurting the sentiment however we expect the bias to improve next week. Meanwhile, traders should focus on other sectors and use intermediate dips to add the selected stocks. 

Views by: Ajit Mishra, VP - Research, Religare Broking

4:17 PM

MARKET VIEW :: What drive indices to record highs today

Tracking cues from positive global markets, Indian equities remained in the green zone in today’s session. US CPI data, released yesterday, eased inflation worries as the current surge is temporary and insufficient for the Fed to taper its bond-buying policy. Global sentiments were further boosted with European Central Bank raising its growth estimates and pledging its liquidity support

Views by: Vinod Nair, Head of Research at Geojit Financial Services

4:07 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Markets held firm in today's trade despite a spate of new public issues being lined up this month. IT & Metals were in the limelight with select Pharma stocks lending support. Several Small Caps having rallied multiple times in CY2021, there was a sense of caution as investors resorted to profit-taking. The timely arrival of the Monsoon however kept the mood buoyant as several Midcaps were seen buzzing around

3:57 PM

Sector of the day :: IT stocks rally; LTI, OFSS surge 4% each

3:56 PM

Sector of the day :: Nifty Metal index soars 2.7%

3:54 PM

NSE Snapshot :: Top Nifty50 gainers of the day

3:52 PM

Sensex contributors :: RIL, Infy, TCS supported the index today

3:50 PM

Broader market :: S&P BSE SmallCap adds 0.4%

>> The index claimed new record of 25,248 today

3:48 PM

Broader market :: BSE MidCap index ends 0.14% higher

>> The index hit new peak of 23,045 in intra-day trade