Sensex 1% away from record 42,274

Sensex 1% away from record 42,274

MUMBAI: As Democrat nominee Joe Biden inched closer to winning the US presidential race, Dalal Street followed global markets’ overnight rally and surged 553 points on Friday to close at 41,893. It’s now within 1% of its all-time high of 42,274, recorded in January this year.
Wall Street’s main indices, however, gave back some of this week’s sharp gains (see graphic) as investors awaited the outcome of a nail-biting election, while the monthly payrolls report underlined the economic challenge facing America’s next President.
On Dalal Street, Reliance Industries, HDFC Bank and HDFC contributed the most to the sensex’s gains, while selling in Maruti and Bharti Airtel limited the gains to some extent. Friday’s rally made investors richer by Rs 1.2 lakh crore with the BSE’s market capitalisation now at its all-time peak at Rs 162.4 lakh crore. The day’s gains came on the back of a Rs 4,870-crore net buying by foreign funds, while domestic funds were net sellers at Rs 2,939 crore, BSE data showed.

According to Kotak Securities VP (private client group research) Sanjeev Zarbade, the US elections — for both the President and the Senate — have nearly ensured there will be no ‘blue wave’, meaning dominance by Democrats. This in turn means lowering the odds for a potential higher taxes and stronger regulations, and hence the global rally in stocks.
In India, “positive macroeconomic data on core sector growth, rebound in GST revenues and robust power demand is driving economic recovery”, Zarbade said. “Earnings announcements have also been largely above expectations and many of the frontline companies in IT and private sector banks have reported higher than expected profits. All this, has boosted investor sentiment,” Zarbade said.
Source From : Times Of India

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