Indian markets are at historically high levels, which have boosted positive sentiment with broad-based purchases and positive global references in sectoral indices. Investors have responded to the US inflation data and concerns have cooled amid expectations that consumer price pressure may occur in the interim, resulting in the possibility of current central bank support. On the domestic front, heavyweight Reliance Industries contributed significantly to the upside of Sensex and Nifty. Metal stocks performed better.
At 09.39 am, the Sensex was up 290.2 points, or 0.55%, at 52,590.67. The Nifty 50 traded up 86.05 points, or 0.55%, at 15,823.80.
The 30-script index reached a lifetime high of 52626.64 a few minutes ago. Also, the Nifty 50 set a new record high of 15,835.55.
The Nifty Small Cap 50 is up 1.2% on broader market indices. Other indices advanced between 0.5-1%.
In terms of sector-wise performance, Nifty Metal was up 1.3%, while Nifty PSU Bank and Nifty Auto were up 0.7% each. All other field codes were in the green.
After the company announced that the liquefied catalyst cracker unit (FCCU) at our SEZ refinery in Jamnagar should be taken for an emergency shutdown, the index heavyweight RIL was the main incentive to be upside down by the definitions. At NSE, RIL shares rose nearly 2%.
In the Nifty 50, Coal India was leading by 4.3%. While the power grid rose 2%, ONGC and JSW Steel each rose more than 1% – and contributed to the success.
On the downside, in the Nifty 50, Bajaj Pinserv fell 1% topped the list, followed by Titan, Bajaj Finance, Wipro, and HDFC Life.
In the Asian lead, the BSE Sensex is the first bull. Shares in Hong Kong also saw a sharp rally. The South Korean and Taiwanese markets were also green because technology stocks were making gains. On the other hand, stocks in Japan and China topped the list.
On Thursday, the Department of Labor announced that the U.S. Consumer Price Index for May 2021 was up 0.6%, after rising 0.8% in the previous month. In the first 12 months of May, US inflation accelerated to 5%, the largest annual increase since August 2008.
On Wall Street, overnight, US markets closed flat nearly 300 points with the Dow Jones, and the Nasdaq soared 100 points. The S&P 500 closed near record highs. Bond yields reached 1.63%.
Although US inflation has risen to its highest level in almost 12 years. However, investors are beginning to combine their sentiments with the Federal Reserve’s view that inflationary pressures will be temporary and that any changes in higher shelter policy will occur gradually.
Markets expect higher bond yields, but taking risks in new times ignores the short term.