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Indian Indices Open At All Time High, BSE Sensex Breaches 56K Mark, Nifty Seen Nearing 17K Mark


Mumbai: Indian indices opened at an all-time high on Wednesday as banks and financials led the rally on the day of the weekly F&O expiry.

The BSE 30-share index was trading 263 points or 0.47% higher at its lifetime high of 56,055, while the broader NSE Nifty advanced 78.2 points or 0.47% to record 16,692.8

Domestic equities began Wednesday’s session positively, with buying demand in HDFC twins and HUL. Top blue-chip performers were HDFC Bank, Eicher Motor, UltraTech Cement, HDFC, and SBI Life. JSW Steel, Tata Steel, Tata Motors, Wipro, and Infosys, on the other side, were among the biggest losers.

HDFC Bank gained over 3% after the Reserve Bank of India (RBI) authorized HDFC Bank to issue new credit cards, months after it had curtailed parts of the bank’s activities owing to breakdowns in its digital payment services. The RBI’s prohibition on the bank launching new digital projects will remain in place.

Sugar stocks fell in early trade after a Reuters report that the country is expected to withdraw its sugar export subsidies from the new season beginning October.

On the BSE, the overall market breadth was neutral, with 1,262 shares gaining and 1,280 falling.

Broader markets traded with gains as midcap and smallcap indices soared higher as inflation is likely to stabilize for the remainder of the current fiscal year, matching the central bank’s forecast.

Vijay Bhambwani, Head of Research Behavioral technical analysis at Equitymaster, said, “Retail buying is continuing to push headline indices higher into blue sky zone (new highs). Since no bull is losing money at current levels there is little chance of profit-taking emerging.

“That is adding to the buyer’s confidence. The weekly expiry of index options is triggering a short squeeze (bears being forced to cover short sales). These confluence factors are leading markets higher,” he added.

The government announced that the country’s active Covid-19 cases have decreased to 3,67,415, boosting investors’ confidence.

India’s case count has risen by 35,178 infections and 440 deaths in a single day, bringing the total number of cases to 3,22,85,857 and the death toll to 4,32,519.

In mid-session dealings elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading with gains.
In overnight trade, however, US equities closed on a sour note.


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