Sensex tops 65,000, Nifty crosses 19,300
The market’s sharp bullish momentum continued for a fourth consecutive session on Monday, with benchmark indices closing at new highs. Strong collection of Goods and Services Tax (GST) crossing the INR 1.60 crore mark in June, a rebound in monsoons and a stable interest rate scenario across the globe pushed the Sensex to close above the 65,000 mark even as Nifty crossed the 19,300 level.
Rakesh Mehta, Chairman of Mehta Equities Limited said, “India is really emerging and is doing better than most of its global peers, with another record high from Sensex, Nifty and Bank Nifty. Nifty is now showing a great deal of resilience, which indicates that all the upsides It is slowly trending towards the 20K mark over the medium term.The mood in the front line market is very optimistic given the strong inflows of foreign investment factor and stabilizing global macro headwinds followed by better than strong domestic microeconomic data.”
The Sensex index finally closed 487 points, or 0.75 percent, up at 65,205.05, while the Nifty index closed at 19,322.55, up 134 points, or 0.70 percent.
The broader markets closed in green with Nifty Mid Cap and Nifty Small Cap up 0.3 percent and 1.2 percent respectively. Most of the sectoral indices closed in the green for this week. Nifty PSU Bank (+3.6%), Nifty Oil & Gas (+2.3%) and Nifty FMCG (+1.1%) were the main gainers. Nifty Pharma and Nifty Healthcare were among the main retirees, dropping 1.1 percent and 0.9 percent, respectively.
Shrikant Chouhan, Head of Research (Retail) at Kotak Securities Ltd, said the rally could remain strong with good inflows of foreign funds in the near term. “Technically, Nifty is hovering between the 19250 to 19335 price range, with the short-term technical setup still on the positive side. However, due to temporary overbought conditions, we could see some profit-taking at higher levels. For traders, it would be 19250-19180 are the key levels to watch out for, while 19400-19435 could act as a crucial resistance area.”