Sensex hits new all-time high amid F&O expiry, hopes of slowdown in US rate hikes

• Both the indices gained over 1% each on Thursday on account of a strong rally in IT, PSU banks and FMCG companies.
• While Sensex closed 762 points higher at a record level of 62,272, the Nifty50 ended 216 points up at 18,474 - a new 52-week high.
• This comes as investors were relieved after the US Fed minutes indicated a possibility of slowdown in the pace of interest rate hikes.
• Shares of Apollo Hospitals Enterprise, HDFC Life Insurance, BPCL, Infosys and Tata Consumer Products were among top gainers on the 50-stock Nifty50 index.

India’s benchmark indices scaled new highs on Thursday, amidst the expiry of the monthly futures and options (F&O) contracts and as sentiments were buoyed by indications of a slowdown in US interest rate hikes.

Both the indices gained over 1% each on Thursday on account of a strong rally in IT, PSU banks and FMCG companies. The Sensex closed 762 points higher at a record level of 62,272, while the Nifty50 ended 216 points up at 18,474 – a new 52-week high.

This comes as investors were relieved after the US Fed minutes on Wednesday indicated a possibility of slowdown in the pace of interest rate hikes.

“Investors wound up their short positions on the expiry day, triggered by US Fed minutes indicating a moderate pace of rate hikes going ahead that eventually propelled benchmark indices Sensex & Nifty to new all-time highs,” said Shrikant Chouhan, head of equity research (retail), Kotak Securities.

The IT sector had the most gains, rising 2.63% on the back of a rally in shares of index heavyweights as well as top IT services firms – Infosys, HCL Technologies, Wipro, Tech Mahindra and TCS.

Asian markets see a mixed day
Most Asian markets traded higher tracking a rally in the US markets in the last few sessions. Only the Chinese stock market was in the red as investors remain worried about economic growth amid rising Covid-19 cases in the country.

The Taiwan TSEC 50 Index rose 1.20%, Japan’s Nikkei 225 gained 0.95% and Hong Kong’s Hang Seng was up by 0.78%. China’s Shanghai SE Composite Index was down 0.25%.

The US markets are closed on Thursday on account of Thanksgiving and will close trading at midday on Friday on Black Friday.

Brent crude oil prices continued to fall and ended 0.89% lower at $84.62 per barrel. The rupee gained 22 paise against the US dollar to close at 81.67 on Thursday.

Shares of Apollo Hospitals Enterprise, HDFC Life Insurance, BPCL, Infosys and Tata Consumer Products are among top gainers in the 50-stock index.

Reports suggest that Tata Consumer Products was likely to buy Bisleri International for ₹6,000 - ₹7,000 crore.

Here are the top gainers and losers on the Nifty500 index on Thursday

On the BSE, there were more advances than declines – 1,941 stocks ended higher while 1,557 closed in the red. Also, 134 stocks ended the day at 52-week highs and 65 at 52-week lows.

“Markets staged a strong up move on the monthly expiry day and gained over a percent. After the gap-up start, the benchmark indices gradually inched higher and gained noticeable momentum in the last half an hour,” said Ajit Mishra, VP - technical research at Religare Broking. “All sectors contributed to the move wherein IT outshined others.”

The monthly F&O contracts expire on the last Thursday of the month.

Foreign institutional investors (FII) were net buyers on Thursday, ploughing in ₹1,232 crore, while domestic institutional investors (DII) were net sellers, withdrawing ₹236 crore.

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