Equity benchmark indices scaled fresh record highs in intra-day deals on Friday led gains in index heavweight Reliance, PSU Banks and select IT stocks.
The S&P BSE Sensex hit a high of 79,672, and thereafter slipped into red to a low of 79,080. The BSE bechmark index was quoting flat around 79,250 levels. The NSE Nifty hit a high of 24,174, and was trading around 24,070 levels.
Reliance, SBI and Tata Motors rallied nearly 2 per cent each. Tata Steel, Nestle, Asian Paints, Sun Pharma and NTPC were the other key movers among the Sensex 30 shares. On the other hand, IndusInd Bank and Bharti Airtel slipped over 1 per cent each.
In the broader market, the BSE MidCap index advanced 0.5 per cent, while the SmallCap gained 0.7 per cent.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The market momentum has the potential to take the Sensex to 80000 level. The healthy trend in the recent rally is that it is driven by fundamentally strong largecaps like RIl, Bharti and the leading private sector banks. However, corrections can happen any time since the market is in the overbought zone and DIIs are booking profits. It is interesting to note that in the tug-of-war between the FIIs and DIIs, the latter has emerged victorious whenever this happened during the last 3 years.”
The elevated valuations in the market continue to be a concern. But the market is not yet in bubble valuation territory. The weak trend in the broader market is likely to continue. Investors can consider booking partial profits in the mid and smallcaps and move the money to fixed income, he added.
US markets ended in positive territory on Thursday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 7,658.77 crore on Thursday, according to exchange data. Global oil benchmark Brent crude climbed 0.49 per cent to USD 86.81 a barrel.
The BSE benchmark jumped 568.93 points or 0.72 per cent to settle at a new closing peak of 79,243.18 on Thursday. The Nifty ended at a fresh record high of 24,044.50, rising 175.70 points or 0.74 per cent.
