BSE Sensex closed the trading day on Monday at 73,327.94, up over 750 points or 1.05%.Nifty50 closed at 22,097.45, up 200 points or 0.93%. While BSE Sensex hit an intraday high of 73,402.16, Nifty50 saw a high of 22,115.55.
According to Aditya Gaggar, Director of Progressive Shares, the index has shown a breakout from the bullish flag and pole formation on the daily chart, suggesting an extension of the current uptrend with a target of 22,330.
Why BSE Sensex, Nifty50 closed at all-time highs
Strength in IT stocks: Nifty IT surged led by Wipro and HCL Tech. IT stocks were the top contributors to the Sensex pack. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market rally, initially fueled by momentum, is currently gaining support from fundamental factors. The significant rebound in largecap IT stocks, supported by slightly positive management commentary, suggests that a previously underperforming segment has the potential to exceed expectations following indications of a turnaround in the sector, he said.
Retail inflation within tolerance band: India’s retail inflation increased to 5.69% in December on an annual basis, remaining within the Reserve Bank of India’s (RBI) tolerance band of 2-6%.
Global markets upbeat: Asian markets rose on Monday, with Japan’s Nikkei reaching a fresh 34-year peak. China’s Shanghai Composite and Hong Kong Hang Seng also saw gains.
FIIs remain net buyers: Foreign institutional investors (FIIs) have bought Indian shares worth Rs 3,864 crore so far in January. However, they sold shares worth a net Rs 340 crore on Friday, while domestic institutional investors bought shares worth Rs 2,911 crore.
Oil prices decline: Oil prices slipped on Monday due to concerns about supply disruption risk in the Middle East. Brent crude futures fell 0.4% to $77.98 a barrel, while US West Texas Intermediate crude was at $72.36 a barrel, down 0.4%.
The Indian rupee rose 12 paise to $82.82 against the US dollar in early trade, driven by currency and debt inflows. The 10-year Treasury yield declined to 3.939%, which indicates expectations of long-term borrowing costs.
