Sensex, Nifty scale record highs again; auto stocks skid, ONGC rises 4.9%

Equity benchmarks darted up to fresh all-time highs on Monday as investors accumulated energy, infra and banking stocks amid supportive macroeconomic cues.

A strengthening rupee and robust foreign fund inflows further buoyed sentiment, traders said. After touching its record intra-day peak of 46,373.34, Sensex ended 154.45 points or 0.34 per cent higher at 46,253.46, its new closing record.

Similarly, the broader Nifty rose 44.30 points or 0.33 per cent to finish at a record 13,558.15. It hit a lifetime high of 13,597.50 during the session.

ONGC was the top gainer in the Sensex pack, rallying 4.91 per cent, followed by L&T, NTPC, ICICI Bank, Sun Pharma, HCL Tech, Titan, and Asian Paints. On the other hand, Mahindra & Mahindra, Bajaj Auto, Tech Mahindra, Bajaj Finserv, HDFC Bank, and Reliance Industries were among the main laggards, dropping up to 1.98 per cent.

Global markets were on a firm footing as a last-minute extension to Britain-EU talks calmed fears over a no-deal Brexit.

“Domestic equities remained firm and witnessed fresh record highs mainly supported by continued rebound in PSU banks. Barring auto, most of sectoral indices traded in positive range,” said Binod Modi, head of strategy at Reliance Securities.

Notably, volatility index shot up sharply today indicating unease about current valuations of the market.

“Positive data flows along with persistent FPI flows have been quite supportive for the markets. Further, better than expected IIP data for October 2020 along with sharp jump in electricity suggests that industrial activities are back on growth track, which bodes well for equities. However, rich valuations of market do not offer much comfort and any threat to earnings recovery may lead to a reversal and broad-based rally will be difficult to sustain,” said Binod Modi, Head-Strategy at Reliance Securities.

India's industrial production rose to an eight-month high of 3.6 per cent in October on the back of recovery in manufacturing, consumer goods and power sectors, official data released after market hours on Friday showed.

The wholesale price-based inflation rose to a nine-month high of 1.55 per cent in November as manufactured products turned costlier, while food prices eased, as per data released on Monday.

Sector-wise, BSE capital goods, oil and gas, industrials, utilities, metal, basic materials and bankex rose up to 2.10 per cent, while auto, realty and telecom indices closed with losses.

Broader BSE midcap and smallcap indices spurted up to 0.79 per cent.

Elsewhere in Asia, bourses in Shanghai and Tokyo ended on a positive note, while Hong Kong and Seoul were in the red.

Stock exchanges in Europe were trading with gains in early deals.

Meanwhile, global oil benchmark Brent crude futures rose 1 per cent to USD 50.47 per barrel.

The rupee advanced by 9 paise to settle at 73.55 against the US dollar.

Foreign portfolio investors (FPIs) remained net buyers in the capital markets as they purchased shares worth Rs 4,195.43 crore on Friday, according to provisional exchange data.