Sensex, Nifty end at new all-time high for third day amid vaccine optimism

The benchmark indices advanced for the fifth straight day on Monday, led by gains in consumer goods and banking stocks amid optimism around the progress in Covid vaccines. Both Sensex and Nifty ended at a new all-time high for the third day. The Sensex rose 347 points, or 0.77 per cent, to end at 45,427, while the Nifty gained 97 points, or 0.73 per cent, to close at 13,356. HDFC, Hindustan Unilever, ICICI Bank and ITC made bigger contributions to index gains. HDFC Bank and Kotak Mahindra Bank were the biggest drags.

“We expect the domestic market to remain strong, backed by vaccine progress, economic recovery and strong FII inflows. However, investors should consider partial profit-booking in pockets trading very expensive, like highly valued large-caps, and trade vigilantly in small- and micro-caps, though the momentum is expected to remain positive in the short- to medium-term,” said Vinod Nair, head of research, Geojit Financial Services.

The benchmark indices have rallied 15 per cent since November 1. The sharp run-up in the market has been underpinned by the record pace of foreign portfolio inflows (FPIs). India’s latest market capitalisation is Rs 181 trillion, or nearly $2.5 trillion.

Experts said the news flow around vaccine progress is helping keep investor sentiment buoyant. The Serum Institute of India, the world’s largest producer of vaccines by volume, has made the formal application for emergency use approval for AstraZeneca Covid-19 vaccine. Also, India’s daily Covid count has remained below 50,000 for a month. With Agency inputs