Benchmark indices had another stellar trading session as global cues continued to remain strong, adding to the gains seen on Monday. Dow Futures pointed to higher openings for the US markets and European markets too were trading higher.
The Sensex ended the day with gains of 613 points, while the Nifty jumped 184 points in trade. Auto stocks like Mahindra and Mahindra, Bajaj Auto and Eicher Motors led gainers in trade.
Says Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services. "The Nifty Midcap 100 index yesterday crossed the 25,000-mark for the first time and continues to hit all time high as the sentiments improve. Over last 1 year, Nifty Midcaps have clearly outperformed, giving returns of ~94% vis-à-vis 65% return in Nifty. As domestic covid cases fell below the 3 lakh mark for the second day in a row since mid-April, helped by the extended lockdowns by majority states, sentiments have turned buoyant.
Hopes have accelerated that soon restrictions/curbs would be eased once cases decline further. Even the news flows around vaccination front is boosting confidence as more Pharma companies are tying up for vaccine manufacturing. Visibility on economic recovery front improves as industrial activities largely continued even during the lockdown and now with restrictions likely to ease, consumer demand is expected to make a come-back. Thus investors are heading more for mid-cap stocks as growing risk appetite and cheaper valuations of these companies compared to large-cap peers have revived their popularity."