NEW DELHI: After months of ups and downs, the Nifty50 finally managed to go past 16,000 mark. Led by heavyweights such as HDFC, Titan and IndusInd, the Nifty hit fresh high of 16,146 on Tuesday and closed the session at 16,130, up 1.55% from previous day's closing. Out of its 50 stock, 44 advanced during the day while 6 ended in red.
It took six months for the Nifty to add 1,000 points even as it rallied from 11,000 to 15,000 in just six month. The 50-stock index had touched the 15,000 mark on February 5th, but challenges such as rising second Covid-19 wave and weak global cues kept the bulls under control.
In the last one year, the Nifty has surged over 45% with Tata Steel, JSW Steel, Tata Motors, Hindalco and Vendanta giving maximum return (between 170-285%). If experts are to be believed, this rally may continue.
Ajit Mishra, VP - Research, Religare Broking, said that the market has resumed trend after two months of the rangebound move so it is unlikely to fade away anytime soon. "However, the participation of the banking index would be the critical factor as that would decide the pace of rising from hereon. Nifty has the potential to test 16,300+ zone now. Traders should align their positions accordingly," said Mishra.
Deepak Jasani, Head, Retail Research, HDFC Securities, said the momentum and breadth of the market are in favour as the near-term outperformance against Asian peers continues. The S&P BSE Sensex surged more 800 points on Tuesday to touch a lifetime of 53,887. It closed the day at 53,823, up 1.65% from previous day closing.
The 30-stock index has given near 43% return in the last one year. More than 500 stocks on the BSE hit a fresh 52-week high, including big players such as Infosys, SBI, Sun Pharma, Titan and UltraTech Cements. Investors’ wealth surged by more than Rs 2 lakh crore in one trading session as the market capitalisations of BSE-listed firms rose from Rs 237.74 lakh cr to Rs 240.07 lakh cr on Aug 3.