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Sensex races past 49K mark as IT, financials rally – Times of India

MUMBAI: Another day, another lifetime peak. The sensex continued its dizzying surge to race past the 49,000 milestone for the first time in its history on Monday before closing at 49,269 points, its all-time closing high. As foreign portfolio investors made net infusions of over Rs 3,100 crore, the 30-scrip index gained 487 points on the day, led by software and financial stocks.
On the NSE, the Nifty closed at 14,485 points, up 138 points. Metals and PSU banks, however, witnessed some selling pressure.
The day’s rally was also supported by expectations of bold moves by the government in the Budget that could boost the economic revival process, market players said.
Monday’s gains on Dalal Street came despite weakness in the European markets in early trades and also in US stock futures that indicated a lower opening on Wall Street. As expected, Wall Street opened lower as technology stocks witnessed selling pressure. At the end of the opening hour on Monday, Nasdaq was down 0.7% while the Dow Jones Index was down 0.5% and S&P500 0.6%. Although there were spurts of selling during the day, the day’s session also discounted the recent rise in dollar index and crude oil prices, market players said.
The market’s surge also made investors richer by Rs 70,000 crore with BSE’s market capitalisation now at an all-time peak of Rs 196.3 lakh crore, BSE data showed. In dollar terms, this took India’s market capitalisation to $2.7 trillion.
Other than some signs of weakness in the global markets, on Dalal Street, more stocks closing lower compared to the ones closing higher is also pushing brokers to be cautious. “Positive newsflow, including results, are pushing indices and stocks higher. A negative advance decline ratio, however, is a sign of caution after such a steep rise. Typically distribution happens in such times of euphoria, which gets noticed a few days later,” said Deepak Jasani, head of retail research, HDFC Securities.
Technically too, the market is in an ‘indecisive’ zone. According to Shrikant Chouhan, EVP-Equity Technical Research, Kotak Securities at Monday’s closing, the market is showing an “indecisive candlestick pattern at the top of the current movement and traders should take some profit at current levels.” The resumption of the upward movement could resume if Nifty crosses 14,520 level while for Sensex, the corresponding level is at the 49,370 level, Chouhan wrote in a note.