Sensex Crosses 60,000 Mark: Key Factors Driving The Market

On Friday, Indian equity benchmarks soared to new all-time highs, with the BSE benchmark index, the S&P BSE Sensex, reaching 60,000 for the first time, and the Nifty surging past 17,900, a key psychological barrier.

On Thursday, the market capitalization of BSE-listed businesses reached an all-time high of 261.73 lakh crore, aided by a strong rally in stocks, with the benchmark Sensex surging 958 points to a new lifetime high.

International Markets

As fears of contagion from China Evergrande dissipated and investors absorbed the Federal Reserve's intentions to reduce US stimulus, global stock markets rebounded overnight and the dollar dropped from one-month highs.

The Dow Jones Industrial Average increased by 506.5 points, or 1.48 percent, to 34,764.82, the S&P 500 increased by 53.34 points, or 1.21 percent, to 4,448.98, and the Nasdaq Composite increased by 155.40 points, or 1.04 percent, to 15,052.24.

Even as higher risk appetite propelled advances for Wall Street and US benchmark Treasury yields, Asian shares were on edge on Friday, weighed down by ongoing uncertainty about the fate of debt-ridden China Evergrande.

Even as it warned that UK annual inflation will reach 4% this year, the Bank of England maintained its stimulus package and record-low interest rate on Thursday. The monetary policy committee (MPC) of the Bank of England (BoE) voted unanimously to keep the benchmark borrowing rate at 0.1 percent, according to a statement.

Indian markets

Nine of the National Stock Exchange's 15 sector indices were trading higher, topped by the 2.5 percent advance in the Nifty Information Technology index. The Nifty Bank, Pharma, Financial Services, and Private Bank indices were all in positive territory.

Positive global indications help HDFC Bank, Tata Consultancy Services, ICICI Bank, HCL Technologies, and Larsen & Toubro.

On Thursday, the market capitalization of BSE-listed businesses reached an all-time high of 261.73 lakh crore, aided by a strong rally in stocks, with the benchmark Sensex surging 958 points to a new lifetime high. Realty and IT indices are up 2 percent each.

IT Stocks

On robust revenue guidance from global IT giant Accenture for the financial year 2021-22, shares of information technology (IT) businesses were on fire, with most of the frontline stocks trading at new all-time highs on the bourses (FY22). Accenture expects revenue growth of 12-15 percent in FY22, compared to $50.5 billion in the current fiscal year.

Larsen & Toubro Infotech, KPIT Technologies, Mphasis, Wipro, Zensar Technologies, and L&T Technology Services all saw increase in their stock.

Infosys, Tech Mahindra, HCL Technologies, Tata Elxsi, Mindtree, and Persistent Systems were among the 14 S&P BSE IT index companies that achieved new all-time highs today.

Coronavirus Update

According to data published on Friday by the Union Health Ministry, India recorded 31,382 new coronavirus infections, bringing the total number of COVID-19 cases to 3,35,94,803, while active cases fell to 3,00,162, the lowest level in 188 days.

According to data updated at 8 a.m., the death toll had risen to 4,46,368 with 318 new fatalities.

The Sensex surpassed the 60k level as risk appetite strengthened following the resolution of the Evergrande debt crisis. However, as US government yields have begun to firm up in response to the Fed's taper hints, we remain wary about markets factoring in rate rise forecasts.