Bulls Magic! Markets hit new heights; Sensex tops 60,330 first time, Nifty 50 just shy of 17,950; IT stocks lead the rally; TCS, Infosys, HCL shine

LargeCaps were in a super rally. While IT stocks outperformed every other counterpart and even benchmarks.

Sep 24, 2021 09:09 IST India Infoline News Service

Indian markets decided to make history on the last day of this week's trading session. In the opening bell of Friday, the benchmark Sensex stretched its momentum and even earmarked more than 60,330-level for the first time. Meanwhile, Nifty 50 was just shy of the 17,950-mark, however, the benchmark does have the potential to surprise with an 18,000-level instead.

A broad-based buying was witnessed in broader markets as well as in terms of sectoral indices. LargeCaps were in a super rally. While IT stocks outperformed every other counterpart and even benchmarks.

For today, Nifty finds support around 17600 while 18000 will act as resistance on the upside.

The domestic equities shrugged off the mixed sentiments of Asian markets as investors traded cautiously as they keenly watch the development around China's realty giant Evergrande. Traders, however, have reacted positively to a hawkish stance from the US Federal Reserve who held the benchmark interest rate near zero but also signalled for a rate hike sooner than expected compared to the previous target of three months ago. Also, the Fed has indicated to likely commence slowing the pace of bond purchases soon if the economy continues to improve.

Back at home, the festive season has taken centre stage as growth is expected to double in terms of demand and supply. Furthermore, investors are optimistic about the country's economic recovery prospects with vaccination drive in full swing and the government giving a boost to financially stressed sectors.

At around 09.40 am, Sensex was trading at 60,173.14 higher 287.78 points or 0.48%. Nifty 50 performed at 17,894.10 up by 71.15 points or 0.4%.

In the early deals, Sensex hit a new 52-week high of 60,333 and Nifty 50 touched a new all-time high of 17,947.65.

In terms of sectoral indices, BSE IT was the star performer soaring by a whopping over 2.2%. Metal and Consumer Durables index were the top laggards of the day.

Top bulls on Sensex were - HCL Tech surging nearly 3% followed by Infosys and L&T soaring 2.2% and 1.9%. Asian Paint and TCS jumped 1.8% and 1.7%. Tech Mahindra climbed over 1.5%. Stocks like Bharti Airtel and HDFC Bank also advanced more than 1% each.

Top bears on Sensex were - Tata Steel, HUL, SBI, Bajaj Finance, M&M and NTPC plunged between 0.5-1%.

Sansera Engineering will make its market debut on stock exchanges today after its initial public offering.

On the global front, Asian stocks that opened broadly in the green during early trade, retreated and were on a mixed note. Hong Kong and Chinese shares were in the red. Evergrande Group shares in Hong Kong dropped around 5%. As per a Wall Street Journal report, it is being known that Chinese authorities have directed local officials to prepare for the potential demise of Evergrande. Meanwhile, uncertainty continues to remains about whether Evergrande will pay the interest on a dollar-denominated bond.

Australia's S&P/ASX and South Korea's KOSPI were trading lower. However, Japan's Nikkei 225 outperformed by rising more than 600 points. Investors return after long holidays with Chinese macro news coupled with global volatility seeing low participation.

Overnight, on Wall Street, US markets closed with stellar gains as indexes witnessed value buying coupled with short covering as the event gets discounted. Dow Jones climbs 500 points while Nasdaq regains 15000. Bond yields spurt to 1.43% even as the US dollar sees selling pressure to close at 93.08.

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