Market On Upward Momentum With Benchmark Indices Continues Testing Record Highs
The Indian benchmark indices hit record highs on the consecutive day, with BSE Sensex clocking 72484 and NSE Nifty crossing 21,800 on December 28. The Bank Nifty index touched a fresh record high of 48,636.45.
At close, the Sensex was up 371.95 points, or 0.52 percent, at 72,410.38, and the Nifty was up 123.90 points, or 0.57 percent, at 21,778.70.
The market started its journey by hitting record highs and maintained that momentum throughout the day.
Top gainers on the Nifty were Coal India, NTPC, M&M, Dr Reddy”s Laboratories, and Hero MotoCorp, while losers included Adani Enterprises, Eicher Motors, LTIMindtree, L&T, and Adani Ports.
On the sectoral front, all other sectoral indices ended in the green, with FMCG, realty, oil & gas, power, and metal indices up 1-2. Broder indices also joined the party, with the BSE midcap index up 0.66 percent and the small cap index rising 0.2 percent.
The market capitalization of the BSE-listed companies has surged to a record level of Rs 363 lakh crore. Having hit record highs on two consecutive days, the analysts flagged concerns about overvaluation. According to them, a correction is imminent and inevitable.
Consequently, the India VIX (a measure of investors” perceptions about the risk of sharp swings based on option prices) reached a 9-month high at 16 levels on December 28.
“Since bulls are favouring markets more, we can expect Nifty to see an immediate resistance of 21,800–21,900 in the next two days. 22,000 is possible in another few days as markets are already operating in an overbought territory,” Moneycontrol reported, quoting Osho Krishnan, Senior Analyst, Technical and Derivative Research at Angel One.
