The main driving force of this rally is the sustained FII buying for the last nine trading days with cumulative buying of Rs 15,767 crore.
Among the 30-share Sensex, the top gainers were IndusInd Bank, PowerGrid, Tata Motors, UltraTech Cement and ITC, while the top losers were SBI, Axis Bank, Infosys, Tata Steel and HDFC
The BSE Sensex on Wednesday jumped 204.23 points to 61,965.56 in the early trade, while the NSE Nifty rose 57.2 points to 18,323.15. The rupee also strengthened 5 paise to 82.01 against the US dollar in the morning trade.
Among the 30-share Sensex, the top gainers were IndusInd Bank, PowerGrid, Tata Motors, UltraTech Cement and ITC, while the top losers were SBI, Axis Bank, Infosys, Tata Steel and HDFC.
V K Vijayakumar, chief investment strategist at Geojit Financial Services, said, “Since bulls are in control of the market now, it is possible that this rally can take the market towards the Nifty all-time high of 18887, which is only 3 per cent away. The main driving force of this rally is the sustained FII buying for the last nine trading days with cumulative buying of Rs 15767 crores. This sudden change in FII strategy has also triggered some short covering, which has assisted the bulls.”
He added that the market will be closely watching the Karnataka exit poll results this evening. A congress victory in the elections is unlikely to impact the market much, but an unexpected setback to the BJP may slightly impact near-term sentiments. More important from the market perspective will be the CPI data from the US expected today. If the disinflation trend continues that would be a shot in the arm for equity markets globally.
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