Sensex, Nifty hit new closing highs on hopes of economic recovery, coronavirus vaccine
In November, Sensex and Nifty clocked the highest gain on a monthly basis in percentage terms since April.
Equity benchmark indices closed on a strong note on Tuesday as both Sensex and Nifty finished trading at all-time closing highs. The 30-share BSE Sensex gained 505.72 points, or 1.15%, to close at 44,655.44, while the broader 30-share NSE Nifty gained 140.10 points to finish trading at 13,109.05.
All the sectoral sub-indices, with exception of Nifty FMCG, finished in the green. The public sector bank, Information Technology and metal sub-indices gained the most at 2.88%, 1.87% and 1.65%, respectively.
On a monthly basis, the indices closed out November with gains of more than 11% each, driven by record inflows from foreign institutional investors and positive developments related to the coronavirus vaccine, Reuters reported. This was the best gain in percentage terms since April.
Experts also pointed at the slower than expected contraction of India’s economy in the second quarter, behind positive sentiments in the equity markets.
“India’s GDP [Gross Domestic Product] data has positively surprised markets, there are signs of recovery in key sectors,” Gaurav Garg, head of research at CapitalVia Global Research, told Reuters.
India’s Gross Domestic Product growth rate contracted by 7.5% for the second quarter (July-September), government data showed last week. However, the numbers were higher than the Reserve Bank of India’s November estimation of an 8.6% contraction.
In Tuesday’s trading, Sun Pharma, TechMahindra, Bharti Airtel, Infosys and ICICI Bank were among the top gainers, while Kotak Mahindra Bank, Bajaj Finance, HDFC and Larsen and Toubro lost the most.