Domestic indices rise on positive global cues, foreign fund inflows

The government approving a Rs 2-trillion production-linked incentive package for various sectors, also buoyed investors, traders said

Topics
Markets Sensex Nifty | foreign funds

The Sensex defied gravity for the eighth straight session to finish at yet another record high on Wednesday, as positive global cues and robust foreign fund inflows fuelled risk-on sentiment.

The government approving a Rs 2-trillion production-linked incentive package for various sectors, also buoyed investors, traders said.

After touching its all-time peak of 43,708.47 during a see-saw session, the Sensex settled 316.02 points, or 0.73 per cent higher, at 43,593.67.

Similarly, the Nifty vaulted 118.05 points, or 0.93 per cent, to close at a record 12,749.15. Intra-day, it touched its all-time high of 12,769.75.

Both the key indices scaled record highs for the third session on the trot.

Tata Steel was the top gainer among the Sensex constituents, surging 7.39 per cent, followed by Axis Bank, Bajaj Finserv, ITC, Sun Pharma, Infosys, L&T, and Bharti Airtel.

ALSO READ: 12 firms to be part of MSCI India index in latest rejig; Bosch, LIC out

Kotak Mahindra Bank spurted 3.12 per cent after MSCI said it will add the private sector lender and 11 other domestic firms to the MSCI India Index. On the other hand, IndusInd Bank, Reliance Industries, Titan, Asian Paints, HUL and HDFC Bank closed in the red, tumbling up to 5.62 per cent.

The Cabinet on Wednesday approved offering Rs 2 trillion worth of production-linked incentives to 10 more sectors to boost domestic manufacturing.

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The incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialised steel, auto, telecom, textile, food products, solar photovoltaic, and cell battery. Global markets remained upbeat on continued optimism over Pfizer’s Covid-19 vaccine news.

“Domestic markets remained upbeat and extended gain for the eighth consecutive day as positive sentiments among investors following clarity of coronavirus vaccine by BioNTech-Pfizer and strong Q2 FY21 corporate earnings persist. While market witnessed some amount of volatility today led by profit booking in some of heavyweights, a sharp rebound in pharma, metals, IT and auto stocks supported market rally.As market has already witnessed a sharp run up and valuations appear to be quite stretched at current level, profit booking at these levels cannot be ruled out and therefore investors should be cautious at these levels,” said Arjun Yash Mahajan Head Institutional Business at Reliance Securities.

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First Published: Wed, November 11 2020. 23:53 IST

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