Key equity indices hit fresh record highs on Thursday. The S&P BSE Sensex, for instance, claimed a new lifetime high of 65,833 intra-day before ending the session at 65,786, up 340 points or 0.52 per cent.
With this, the m-cap of all BSE-listed companies touched the Rs 302 trillion-mark.
The Nifty50, on the other hand, hit a new peak of 19,512 during the day. It shut shop 99 points, or 0.51 per cent, higher at 19,497 led by M&M (up 5 per cent), Apollo Hospitals, Tata Motors, Reliance Industries, Britannia Ind, BPCL, Axis Bank, NTPC, Cipla, and Hindalco.
In the broader market, the Nifty MidCap100 index scaled new peak of 36,380 ahead of its close at 36,373, up 0.97 per cent. The Nifty SmallCap100 index, too, settled 0.80 per cent higher after hitting a 52-week high of 11,175 during the day.
Among sectors, the Nifty Realty index gained 2.25 per cent, while the Nifty Media index rose 1.7 per cent, and the Nifty Auto index added 1.12 per cent.
Senco Gold IPO
Senco Gold’s initial public offer received massive subsription on the final day of the bidding with the total offer being subscribed 59 times till 3:30 PM. This was led by QIBs, whose total bids stood at 137 times the shares on offer; NII at 62 times subscription; and retail investors 14 times. Bidding closes at 5 PM today.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “An important trend in the market is the surge in retail investor participation as indicated by the sharp increase in new demat accounts ( 2.36 million) opened in June. New retail investors jumping on to the market bandwagon normally happens at the peak of a rally. This is a sign of caution.”
The FPI liquidity driven rally is showing signs of losing steam. Some of the leading indicators like credit growth for Q1 from banking majors like the merged entity HDFC Bank indicate a possible slowdown in the economy. Two-wheeler sales in June indicate that demand continues to be a problem in rural areas. In brief, the macroeconomic scenario, though good, is not so bullish as to warrant continuation of the rally, which has already run a bit ahead of fundamentals, he further said.
Investors should not chase low-grade small-cap stocks at this juncture. Stay invested in high quality large-caps. Wait for the Q1 results for direction, he added,
Global Cues
Tokyo stocks opened lower on Thursday, extending falls on Wall Street as minutes from the Federal Reserve’s June meeting signalled the possibility of more interest rate hikes ahead.The benchmark Nikkei 225 index was down 0.83 percent, or 277.77 points, at 33,060.93 in early trade, while the broader Topix index slipped 0.53 percent, or 12.18 points, to 2,293.85.
Wall Street’s main indexes ended with modest declines on Wednesday as investors digested minutes from the U.S. Federal Reserve’s latest meeting and braced for significant economic data in the days to come.
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