Sensex rises for 4th day, ends at record high. Rupee down to 15-month low vs USD

By Livemint
Indian stock market update: Sensex ended 148.53 points higher at 60,284.31 (MINT_PRINT)

Indian stock markets ended at record closing highs today, boosted by emergency-use recommendation for Bharat Biotech's COVID-19 shot in kids. After a volatile trading session, the 30-share Sensex ended 148.53 points higher at 60,284.31 while Nifty rose 0.26% to 17,991.95. An expert panel today recommended Bharat Biotech's Covaxin for emergency use in children aged two to 18 years, making it the first COVID-19 vaccine in the country to get a nod for use in kids below 12 years.

Titan was the top gainer in the Sensex pack, rallying over 5%, followed by Bajaj Auto, Bajaj Finserv, SBI, Nestle India, ITC, Axis Bank and Tata Steel. On the other hand, HCL Tech, Tech Mahindra, UltraTech Cement, TCS and Sun Pharma were among the laggards.

Nifty auto stocks ended 0.88% higher after rising 1.32% to their highest level since May 2018 during the session.

Countering some of the gains was the Nifty IT index which fell 0.88%, with sector heavyweight Infosys closing 0.34% lower a day before quarterly results. HCL Technologies, due to report results on Thursday, was down 4%.

The Indian rupee fell to a 15-month low today, sliding past important support levels. The currency extended a bout of weakness to fall to a low of 75.65 against the U.S. dollar before ending at 16 paise lower at 75.52. Negative triggers such as higher oil prices, rising U.S. bond yields and consequently a stronger dollar pushed the Indian currency lower.

Here is what analysts said on today's market action: 

Vinod Nair, Head of Research at Geojit Financial Services.

"Following selling in IT stocks as a result of a weak start to the earnings season and weakness in global markets, the domestic market traded in the negative zone. However, with strong support from PSU Banks on revamped hopes of privatisation and continued buying interest in consumer goods, metals and auto, indices managed to end on a positive note. While global markets traded with cuts in fears of rising inflation due to soaring commodity prices and energy crunch"

Deepak Jasani, Head of Retail Research, HDFC Securities

"Nifty has closed at the highest ever closer to 18000 levels. Advance decline ratio improved as the day progressed to above 1:1. The upward momentum could continue with some intermittent profit taking. Subdued sentiments in the global markets could however slow this momentum.

"The markets are facing tremendous resistance around the 18000 level. We need to get past 18050 for the next leg of this rally to set in. Once that is crossed, we will head to 18200-18250 as the next target level. 17800 is strong support for this market and as long as this holds, all dips and corrections can be used to enter long positions."

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

"The markets are facing tremendous resistance around the 18000 level. We need to get past 18050 for the next leg of this rally to set in. Once that is crossed, we will head to 18200-18250 as the next target level. 17800 is strong support for this market and as long as this holds, all dips and corrections can be used to enter long positions."

Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities

“Zooming into the Nifty 60 min charts, we can observe that although the index has corrected from the highs of Monday, it bounced back today and managed to close on a strong note above the 20-period MA. This indicates that the short term uptrend looks set to continue. Further upsides are likely once the immediate resistance of 18009 is taken out. Next upside targets are at 18100. Immediate support to watch for weakness is at 17958."


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