Sensex, Nifty hit record highs ahead of Union Budget
29 Jan 2018
After a historic week, both the BSE Sensex and the NSE Nifty Indian market saw a blockbuster opening today, which took them to record highs three days ahead of the Narendra Modi government's last full year Budget.
The Nifty50 rose to a record high of 11,148.25 in morning trade, while the S&P BSE Sensex rose to a fresh record of and 36,356.99.
The rise was largely powered by a substantial rise in Maruti Suzuki stock following an agreement for lower payment of royalty. The Maruti Suzuki stock alone lifted the market by almost 370 points on its Q3 net profit announcement last week.
Maruti Suzuki was the top Sensex gainer rising up to 3.75 per cent in early trade. TCS (2.83 per cent) and Tata Steel (2.28 per cent) were other major gainers on Sensex.
The auto sector was the highest gainer among 19 sectoral indices on BSE rising nearly 400 points.
The Indian market closed the week on a high note, up 1.6 per cent for the week ended 25 January, ahead of the crucial Budget week which most experts think could belong to the bulls.
The index is likely to clock fresh highs in the Budget week fuelled by further short coverings as well as strong global cues.
However, in the budget week, analysts advise investors to remain stock specific and focus less on the index which is likely to remain volatile, according to Moneycontrol.
''Sectors which are bullish on their long-term charts and have witnessed outperformance viz, sectors like cement, infrastructure, FMCG, and automobiles are likely to exhibit bullishness ahead of budget as the near / short term charts are sustaining above breakout levels could be in action ahead of the Budget,'' Rajesh Palviya, head – technical & derivatives analyst, Axis Securities told Moneycontrol.
The market looks a little nervous ahead of budget especially on long term capital gains (LTCG) front and fiscal consolidation roadmap which could fuel some profit taking either ahead of post Budget session.
The Nifty successfully managed to defend its important milestone of 11,000 on a weekly basis. Abundant liquidity and strong global cues supported the sentiment on the Street.