Sensex rallies 487 pts to close above 49k for first time, IT stocks shine

Mumbai: Equity benchmarks Sensex and Nifty soared to lifetime highs for the second straight session on Monday as encouraging corporate earnings prompted investors to accumulate IT, finance and auto stocks.

After touching a record intra-day high of 49,303.79, the 30-share BSE Sensex ended 486.81 points or 1 per cent higher at 49,269.32, closing above the 49,000-level for the first time.

Similarly, the broader NSE Nifty surged 137.50 points or 0.96 per cent to finish at its fresh lifetime high of 14,484.75. It hit a record 14,498.20 during the session.

IT stocks led the rally after TCS on Friday reported a 7.2 per cent jump in December quarter net to Rs 8,701 crore and projected double-digit revenue growth for FY22.

HCL Tech was the top gainer in the Sensex pack, vaulting 6.09 per cent, followed by Infosys, HDFC, Maruti, Tech Mahindra, Bajaj Auto and M&M.

On the other hand, Bajaj Finserv, Bajaj Finance, Reliance Industries, L&T, Kotak Bank and SBI were among the laggards, shedding up to 1.92 per cent.

According to Binod Modi, Head-Strategy at Reliance Securities, domestic equities remained in the grip of bulls with benchmark indices registering fresh highs as robust earnings performance by TCS and D-Mart bolstered investors' confidence.

"Continued improvement in COVID-19 recovery rates and announcement of vaccination process from January 16 offered comfort to markets. Further, expectations of sharp recovery in corporate earnings led by sustained rebound in key economic data may propel market to witness fresh highs in the near term," he stated.

FPI flow may continue to remain favourable given status of global economy, stance of global central bankers and weak dollar, he said, adding that domestic equities can also witness pre-Budget rally in the coming weeks considering broad expectations of pro-growth measures.

Sector-wise, BSE IT, teck, auto, FMCG, realty, telecom and healthcare indices rallied up to 3.63 per cent, while energy, metal, capital goods, power, basic materials and bankex closed with losses.

Broader BSE midcap and smallcap indices lost up to 0.17 per cent.

Global markets retreated from record levels as investors booked profits amid unabated rise in coronavirus cases.

Elsewhere in Asia, bourses in Hong Kong and Seoul ended with gains, while Shanghai was in the red.

Stock exchanges in Europe were trading on a negative note in early deals.

Meanwhile, the global oil benchmark Brent crude was trading 1.52 per cent lower at USD 55.14 per barrel.

The rupee depreciated by 16 paise to close at 73.40 against the US dollar, tracking a rebound in the American currency overseas.

Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 6,029.83 crore on Friday, according to exchange data.