PLI Push: Sensex crosses 59K-mark; Telecom stocks soar

Source :IANS
Author :IANS
Last Updated: Fri, Sep 17th, 2021, 11:02:25hrs
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Mumbai: India's key stock indices rose to record high levels on Thursday, a day after the government announced support measures for some beleaguered sectors along with provisions for PLI schemes for others.

Accordingly, both the key indices -- S&P BSE Sensex and NSE Nifty50 -- recorded new intra-day and closing highs. While the Sensex crossed the 59,200-mark, the Nifty breached the 17,600-level.

Initially, both the key indices had a gap-up opening. However, global cues capped gains as Asian markets were largely weak as the debt crisis at China Evergrande Group and Beijing's latest push to rein in private industries hurt sentiments.

On the other hand, European stocks traded higher following overnight gains in the US markets.

Among sectors, banking, telecom, FMCG and energy shares gained the most, while metals and IT fell the most.

Consequently, S&P BSE Sensex traded at 59,141.16 points, higher by 417.96 points or 0.71 per cent from its previous close.

Similarly, NSE Nifty50 rose to 17,629.50 points, higher by 110.05 points or 0.63 per cent from its previous close.

"Nifty closed at record high level for the third consecutive session aided by banks and FMCG shares. However, the advance decline ratio has fallen below 1:1 denoting profit taking across the broader markets," said Deepak Jasani, Head of Retail Research, HDFC Securities.

According to Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services: "Despite weak global cues, introduction of PLI reforms for telecom and auto sectors led the rally, giving confidence to the investors about the reform-led economic recovery.

"Though the rally was broad-based, PSU banks showed stellar performance -- up over 5 per cent. In fact, Bank Nifty hit record high on Thursday, breaching its previous high recorded in February 2021."

Vinod Nair, Research Head at Geojit Financial Services, said: "Driven by reforms, the Indian market kept raising its bar and traded to new record highs. Today's market rally was driven by strong buying in banking stocks, especially in the PSBs.

"The banking sector is expected to perform well in the coming days as the sector, which failed to fairly participate in the ongoing rally due to fear over asset quality, is gaining traction."

S. Ranganathan, Head of Research at LKP Securities, said: "It is generally seen that when an underperformer makes a much-awaited up move, it creates a feel good effect on others. Ahead of the operationalisation of the NARCL, banks provided the much-needed ammunition to the Bulls to notch up record highs of 59,000 on the Sensex. The charge of the energised Bulls took India's market capitalisation ahead of France, as PSU banks lent the firepower."

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