Sensex, Nifty Scale New Records For Third Day On Banking, FMCG Gains

India's stock benchmarks closed at record highs for the third consecutive session aided by gains in banking, fmcg and energy stocks.

The S&P BSE Sensex rose 0.71% to 59,141.16, a record close for the 30-stock index. This is the first time Sensex crossed above 59,000 mark. The 30-stock index hit a record 59,204.29 in intraday trade. The NSE Nifty 50 advanced by a similar magnitude to 17,629.50, a record close. The 50-stock index also logged a record 17,644.60 in intraday trade. Reliance Industries Ltd. contributed the most to the index gain, increasing 2.1%. IndusInd Bank Ltd. had the largest increase, rising 7.3%. Today, 26 of 50 shares rose, while 24 fell.

Banking stocks rose ahead of Finance Minister Nirmala Sitharaman’s address scheduled later today. Several reports said that announcement of bad bank is likely in the address. The NSE Nifty Bank logged a record 37,720.15 in intra-day trade.

The broader indices underperformed larger peers with the S&P BSE MidCap adding 0.5% and S&P BSE SmallCap closing little changed. Twelve of the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Bankex index gaining over 2%.

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The market breadth was skewed in favour of bulls. About 1,677 stocks advanced, 1,592 declined and 156 remained unchanged

"A strong rebound in FIIs flow in last three days (bought over Rs 3,200 crore equities in two days) augured well, which led Nifty to record fresh all-time high. Unlike developed markets, faster ramp-up in vaccination process and relatively lower daily caseload offer India an edge over other markets and therefore domestic bourses are resilient despite pressure in global equities", Binod Modi, Head Strategy at Reliance Securities wrote in a note before adding that the "liquidity driven market may take a backseat in 2022 and investors must start focusing on quality aspect of companies".

• The NSE Nifty Bank logged a record 37,720.15 in intra-day trade.

• The previous record level for Nifty Bank was 37,708.75 on Feb 16, 2021.

Shares of TVS Motor Company Ltd. rose 1% in intraday trade to Rs 554 apiece before paring gains after the company announced the launch of TVS Raider in the 125 cc segment. The launch is targetted at young customers in India and across the world. The vehicle has first-in-class features like reverse LCD digital speedometer, optional 5-inch TFT cluster with Voice Assist and multiple ride modes, the company said in an exchange filing.

Starting at a price of Rs 77,500 (ex-showroom, Delhi), TVS Raider will come in a colour selection of red, blue, black and yellow.

Of the 42 analysts tracking the company, 24 maintained 'buy', 6 maintained 'hold' and 12 maintained 'sell' recommendations. The overall consensus price of analysts tracked by Bloomberg implied an upside of 14.3%

India’s Directorate General of Trade Remedies has proposed the extension of anti-dumping duties on some steel products imported from China, Japan, South Korea, Russia, Indonesia, Ukraine and Brazil for 5 more years, according to notifications by the Trade Ministry.

• Imports of some cold-rolled and cold-reduced flat steel products originating in or exported from China, Japan, South Korea and Ukraine should attract an anti-dumping tax of $576 a tonne, it said in a circular

• A separate circular recommended an anti-dumping duty between $478-$561/tonne on some hot-rolled flat products from China, Japan, South Korea, Russia, Brazil and Indonesia

• India’s finance ministry will decide on the final taxes.