Sensex Breaches A Record 63,000 Points Mark For The First Time

Benchmark indices were on a roll, with the Sensex breaching a record 63,000 points for the very first time on receding fears on the inflation front. the Sensex was last trading at 63,135 points, up 443 points in trade.

Falling crude prices on account of covid related lockdowns in China, has raised hopes of a sharp reversal in inflation and hence interest rates, across the globe.

Auto and metal packs along with buying in heavyweight Reliance Industries led to sharp gains. Among the stocks that gained were largely from the metal and auto space. Mahindra and Mahindra led gainers fromthe Nifty, while other stocks that jumped were Hindalco, Bajaj Auto, Grasim and SBI life.

Select banking stocks like IndusInd Bank were among the losers in trade. "We expect market momentum to continue although the pace of gains may slow down given the run-up in last few days. Oil& Gas, auto, IT, & FMCG stocks have been supporting the Index with strong movement in heavyweights like Reliance. Auto stocks would be in focus ahead of the monthly sales data for Nov would be released. Expect banking, consumer and cement stocks to remain strong over the next few days," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

One of the prime reasons for the gains in stocks were fears of receding inflation on account of falling crude prices. There are hopes that the rise in interest rates would not be as fast as expected.