The second vaccine within a week to show results, far exceeding expectations, has raised hopes that a vaccine would soon be in the market that would ease fears of lockdowns and help economies the worldover recover.
By 9.19 am, the BSE Sensex was trading 364.31 points or 0.83 per cent higher at 44,002.29. The index hit a record high of 44,161.16 in early trade. The NSE barometer Nifty50 gained 99.90 points or 0.78 per cent to 12,880.15. The index scaled an all-time high of 12,934.05 in early trade.
What’s driving the market
Vaccine hopes: It was the single most factor driving the sentiment. Moderna’s announcement came a week after Pfizer and Biontech said their Covid-19 vaccine candidate was found to be more than 90 per cent effective in preventing Covid-19 in participants.
FPI inflows: November’s Rs 29,436 crore foreign flows into equities so far have been better than Rs 19,541 crore flows in October and are second highest this year since August’s Rs 47,080 crore flows. ET has reported that the rise in foreign inflows have come following a meeting of top overseas funds with PM Narendra Modi on November 5, ahead of an increase in India’s weightage in MSCI indices by November-end.
Global rally: MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.11 per cent on Tuesday morning, a day after hitting its highest level since launching in 1987. The MSCI World Index of global shares which also hit a record high on Monday, ticked higher still in Asia’s morning trading. Meanwhile, US stock indices also hit record highs overnight.
Recovery in banks: Nagaraj Shetti of HDFC Securities told ET that the banking sector was in the driver’s seat in the recent upside rally of Nifty. The overall chart pattern of Bank Nifty is looking positive and signaling more upside in the near term. “We observed a decisive upside breakout of the ascending channel pattern at 27,400 in the last week. We expect Bank Nifty to move up further and reach the 30,000 mark in the next couple of weeks,” he said.
How are bluechips doing
Twenty two of 30 Sensex stocks were trading higher in early trade. At 9.23 am, shares of Tata Steel were up 4.35 per cent at Rs 513.50. Bharti Airtel added 2.22 per cent to Rs 492.10. SBI, HDFC Bank, Mahindra & Mahindra and Asian Paints rose 1.5-2 per cent. Reliance Industries advanced 1.47 per cent to Rs 2,031.30.
IT and FMCG sectors were trading lower. HCL Tech was down 1.13 per cent at Rs 821.35. ITC, Infosys and TCS fell up to 1 per cent. Bajaj Finserv and Bajaj Finance edged lower.
Broader market indices lagged larger peers. The BSE Midcap index rose 0.54 per cent while Nifty Midcap was up 0.4 per cent. Broadest index on BSE, BSE 500 was up 0.61 per cent.
Vodafone Idea gained 5 per cent to Rs 9.56. Suzlon added 4.90 per cent to Rs 3.85. Adani Green, IIFL, Jamna Auto and GE Power added up to 5 per cent.
Asian stocks cautiously pushed further into record territory on Tuesday, and oil edged higher after US benchmarks were pepped up by news of another promising coronavirus vaccine. Hong Kong benchmark rose 0.1 per cent and Australia’s S&P/ASX 200 rose 0.23 per cent, after Monday’s trading had been severely curtailed by a software glitch. Japan’s Nikkei 225 fell 0.2 per cent after hitting a 29 year high the day before.
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