Nifty gains 114 points, Sensex approaches 80,000 amid large-cap rally

The NSE Nifty was up by 0.48 per cent or 114.30 points at 24,158.80, while the BSE Sensex was at 79,497.83, up by 0.32 per cent or 254 points at 9.40 am on Friday.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “The market momentum has the potential to take the Sensex to the 80000 level. The healthy trend in the recent rally is that it is driven by fundamentally strong large caps such as RIL, Bharti and the leading private sector banks. However, corrections can happen any time since the market is in the overbought zone and DIIs are booking profits. It is interesting to note that in the tug-of-war between the FIIs and DIIs, the latter have emerged victorious whenever this has happened in the last three years.

The elevated valuations continue to be a concern. But the market is not yet in bubble valuation territory. The weak trend in the broader market is likely to continue. Investors can consider booking partial profits in the mid- and small-caps, and move the money to fixed income.”

Top gainers on the NSE include, NTPC (2.57%), ONGC (2.04%), Dr Reddy’s Lab (1.91%) and Coal India (1.63%). Top losers include Adani Ports (-1.46%), Grasim (-1.33%), Ultratech Cement (-1.15%), Shriram Finance (-0.96%) and M&M (-0.66%).