Nifty scales 16,000 on hopes of faster economic recovery

Representational image.   | Photo Credit: PTI

The Sensex and Nifty rose to record closing highs on Tuesday, with the NSE’s 50-company benchmark closing above the 16,000 level amid renewed investor interest in stocks on bets that the economy may recover faster than anticipated earlier.

The S&P BSE Sensex gained 872.73 points, or 1.65%, to 53,823.36 while the NSE Nifty 50 added 245.60, or 1.55%, to end at 16,130.75.

On the BSE, the top gainers included Titan, which rose 3.89%, HDFC, up 3,72%, Nestle, IndusInd Bank and UltraTech Cement. Majority of the sectoral indices reported gains except for media and metals.

“Volumes on Nifty were higher than average which indicates strength,” said Gaurav Udani, CEO & Founder, ThincRedBlu Securities. “We can expect Nifty to touch 16,250 and 16,400 in the coming days. On the lower side 15,950 and 15,880 will act as strong support,” he added.

S. Ranganathan, Head of Research, LKP Securities said the bulls had pulled off the 16,000 mark on the Nifty ‘effortlessly’, buoyed by positive news flow on GST and export data.

“The journey past 16,000... quite clearly has been led by the retail investors who have allocated more into equities,” said Mr. Ranganathan.

“The present rally is all the more significant since it provides enough opportunities to the new investor coming in now as several pockets of the economy still offer value going forward,” he added.

Domestic funds had invested ₹28,000 crore into stocks in the first four months of the current fiscal, Mr. Ranganathan noted.

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Printable version | Sep 26, 2021 4:14:30 PM |

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