Investor wealth soars as Sensex hits life-time high, ignoring growth worries, is this a Swan song?

Last Updated: Mon, Nov 25, 2019 19:23 hrs

Mumbai: The thirty scrip sensitive benchmark equity index Sensex on Monday ended the trading session at a high of 40,889.23, up by 529.82 points. During the trade, it zoomed 572.3 points to 40,931.71, its record intra-day high.

Markets were bearish over reports that US and China could soon clinch a trade deal ending a nearly 16 month long costly trade war.

Reports of an early trade deal trumped investors growth concerns. India is scheduled to release its Q2 GDP figures later this week which is widely expected to be below 5 per cent.

Investor growth from the single trading session grew by Rs 1.81 lakh crores. Market capitalisation (m-cap) of BSE-listed companies rose by Rs 1,81,930.89 crores to Rs 1,54,55,740.67 crores.

At 1.50 p.m., the Sensex was up 464.53 points at 40,823.94 after hitting its life-time high of 40,845.86 earlier in the day. The broader Nifty also surpassed the 12,000-mark led by index-heavyweights like Reliance Industries and Infosys.

The top Sensex gainers rally were Bharti Airtel, advancing over 5 per cent, followed by Tata Steel, Vedanta, IndusInd Bank, HFDC Bank. On the Nifty50, 43 scrips gained while seven traded lower.

"Cues that US and China will conclude a deal by next month lifted the sentiment across the globe. Reconstruction of Sensex indices and new developments over divestment to curb fiscal deficit provided confidence in Indian market. Expectations of further cut in Expectations of further cut in interest rate by the RBI gave advantage to rate-sensitive stocks," Vinod Nair, head of research, Geojit Financial Services, said.

Deepak Jasani of HDFC Securities said, "Core Infra data for October will be unveiled on November 29 and India's Q2FY20 GDP number will also be unveiled on Nov 29 post market hours. The macro numbers may not surprise positively but will put behind one uncertainty. The macro numbers may not surprise positively but will put behind one uncertainty."

Shrikant Chouhan, SVP with Kotak Securities said, "The market closed higher mainly due to sustained buying from FIIs since last couple of weeks, domestic news flow is shaping up positively and global worries on the trade tariff front are on the verge of cooling down. It was a broad based rally for the market, and except Media index, all other indices closed higher. Tomorrow, we could see continuation of the current up move on the back of rebalancing of MSCI’s portfolio. Metal index is exhibiting exceptional strength; traders should keep the metal basket on their radar."

Speaking about the movement on Nifty, Mustafa Nadeem, CEO, Epic Research explained, "Nifty closes at record highs after more than a hundred days on the back of positive sentiments and short covering. Its a close short of 16 points to breach the all-time high but with a good amount of breadth gives an indication of making new record highs in the coming days. The kind of momentum pick up we have seen in sectors such as Metals followed by Finance, consumption, and other cyclical space is very promising."

*With Agency inputs