Markets cruise at fresh highs; Sensex nears 63,600, Nifty 50 tops 18,800 led by strong fundamentals

1 Dec 2022 , 09:58 AM

Indian markets were on a bull run and further scaled to new highs on Thursday’s opening bell as investors were satisfied by the country’s major economic data such as GDP growth for Q2 and Eight Core Industries performance in October this year. Also, US Fed Chairman Powell’s speech of easing pace rate hikes also tigger the rally into the markets. A broad-based buying was witnessed across benchmarks that placed Sensex and Nifty at fresh record highs at 63,583-mark and 18,874-levels.

The domestic equities also tracked the positive global cues and performance was also influenced after FIIs record third highest single-day inflow ever on MSCI rejig as the flow was the highest since February 24, 2021 when FIIs recorded highest over inflow at Rs28,739.17 crore. The second largest inflow was on April 21, 2015 at Rs17,488.73 crore.
  
At around 9:55 AM, Sensex was trading at 63,506.11 higher by 406.46 points or 0.64%. The index has surged nearly 450 points with all-time high at 63,583.07 in the early trade.

Nifty 50 performed at 18,868.45 above 110.10 points or 0.59%. The index has risen over 100 points with fresh record high of 18,874.30 in the early exchange of deals.

Banking, metals, IT, Consumer Durables and oil & gas stocks were among major contributors to the upside on stock exchanges. However, auto index was the top laggards in the initial trading session ahead of releasing monthy sales data..

On NSE, in terms of sectoral indices, the IT and Metal index jumped 1.96% and 1% respectively. The Banking index soared nearly 220 points However, the Healthcare index dived 0.23%.

Auto and metal stocks will be in focus ahead of their November month sales and production data.

Nifty bulls were – Hindalco surging nearly 3% followed by Tech Mahindra and Wipro climbing 2% and 1.9% respectively. Stocks like TCS, Infosys, HCL Tech, L&T, HDFC and benchmark heavyweight RIL advanced between 0.5-1.5%.

Nifty bears were – Bajaj Auto in lead plunging by 2.4%. UPL and Eicher Motors dipped 0.65% each, while Hindustan Unilever and Hero MotoCorp shed about 0.5% each. 

India’s gross domestic product (GDP) slows by 6.3% during the July-September quarter of 2022-23 compared to a 8.4% contraction in Q2 2021-22, according to the data released by National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation showed the GDP growth rate. Further, real GDP stood at Rs38.17 lakh crore in Q2, FY23, as against Rs35.89 lakh crore in Q2, FY22.

Meanwhile, India’s Combined Index of Eight Core Industries increased by 0.1% (provisional) in October 2022 as compared to the Index of October 2021. Final growth rate of Index of Eight Core Industries for July 2022 revised to 4.8% from its provisional level 4.5%.

Furthermore, US Fed Chairman Powell’s speech said that indicated moderation in rate hikes from December itself fuelled a massive rally in all Asian markets. Strong action can be witnessed in IT stocks today owing to the Fed’s stance.

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