Indian shares hit a new high today, led by gains in heavyweight Reliance Industries. RIL shares were up over 1% to one week high of ?1,979, as the stock extended gains to the third day. RIL shares had hit a 52-week high of ?2,368 in September and since then has struggled in a range.
Covid-19 vaccine developments globally and a slowing pace of virus spread at home supported sentiment. The Nifty was firm above 13,150 while Sensex rose about 150 points. Both indexes have hit record highs in 10 of their last 17 sessions, gaining more than 11% in November on record inflows from foreign institutional investors.
Boosting sentiment was news that Britain became the first western country to approve a COVID-19 vaccine, with doses of the Pfizer-BioNTech vaccine available from next week for those at high risk.
In India, the daily rise in coronavirus cases stayed below 40,000 for the fourth straight day today.”
The strong market rally in November was led by a potent mix of factors like record high FPI inflows, better than expected Q2 corporate results and GDP numbers, optimistic commentaries from managements of some crucial sectors , positive news on the vaccine front and increasing retail investor participation. The sustained decline in dollar index provides strong support to emerging market equities. Big correction in the markets will happen only if there is reversal in these positive trends or some unexpected negative trigger emerges,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Investors are now awaiting the outcome of a three-day meeting of the Reserve Bank of India’s monetary policy committee that ends on Friday, where the central bank is widely expected to stand pat on interest rates.
“We had a marginal gap-up opening and have again come to test the 13150 level which is a crucial point for the Nifty. We need to keep above this level on a consistent basis in order to continue the upside rally. If that happens, we could reach the levels of 13250-13300. When the markets corrected yesterday, strong support was made at the 12950-13000 level. Keeping that as a new base, traders can go long on this market,” said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
News Source:- livemint