Stock market today: Another day, another record! The bulls continued to be in the driver's seat on Wednesday, December 6, amid healthy buying in almost all sectors. Investor sentiment has been positive given a host of supportive domestic factors, such as the BJP's landslide victory in three assembly state elections and strong GDP data for Q2.

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The NSE Nifty 50 index ended 82.6 points or 0.4 per cent higher at 20,937.7—a record closing high for the fourth straight session—while the S&P BSE Sensex finished the day with a gain of 357.59 points or 0.52 per cent at 69,653.73. Nifty Bank slipped in the red, finishing the day 0.38 per cent or 177.7 points, lower at 46,834.55.

Staying at the forefront, the Nifty IT index closed 1.67 per cent, or 543.45 points, higher at Rs 33,022.6, aided by buying in LTTS, Wipro, and LTIMindtree. Barring Persistent Systems, all IT stocks ended in the green. Amid broad-based indices, Nifty MidCap 100 and Nifty SmallCap 100 both ended in green with gains of 0.25 per cent and 0.38 per cent, respectively.

In addition, Wipro, LTIMindtree, ITC, and L&T were among the top gainers in the Nifty basket, trading with gains of around 4–2 per cent. On the other hand, Adani Enterprises, Eicher Motors, Cipla, and NTPC were among the top losers, down nearly 2-1 per cent.

"Post-state elections, market optimism thrives, confirming policy continuity and meeting investor expectations. A robust FII reversal is fuelled by receding inflation and dropping yields in both US and Indian markets. The allure of Indian market gains post-China credit rating downgrade and decline in oil prices was followed by ease in geopolitical tensions," said Vinod Nair, Head of Research at Geojit Financial Services.

A strong rebound in IT, driven by reduced US recession risks and in anticipation of robust summer demand, fuels the momentum in the power sector, Nair added.

Despite a promising outlook, short-term profit booking may occur due to domestic premium valuation concerns. Further, lingering El Nino risks, a drop in reservoir levels, and reduced sowing may hold RBI to profoundly upgrade H2FY24 growth and reduce future inflation estimates, the expert said.

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