The stock market continued to rise for the seventh consecutive session on Monday. Nifty 50 crossed the level of 18,500 points and Sensex reached 62,000 points for the first time. Despite the decline in global equity markets and crude oil prices exceeding $ 85 a barrel, the country’s equity market is rallying.
The BSE Sensex made a new high of 61,963.07 and closed at 61,765.59, up 459.64 points. Nifty 50 gained 138.50 points and closed at 18,477.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “It is difficult to overwhelm the valuation apprehensions in the market in the short-term. Long-term investors should not buy stocks that have risen significantly. Should stay in the stocks.
The market rally is being helped by the following factors:
Increase in prices of technology stocks
Investors continue to have an interest in technology stocks. The Nifty IT index rose 1.57 percent on Monday. Large software companies like Mindtree and Infosys have good results and the strong dollar has increased buying in the stocks of these companies.
rise in metals
The Nifty Metal index is up nearly 4 percent. Metals stocks are rallying as base metals hit several-year highs. Hindustan Copper, Vedanta, and Hindustan Zinc Metals were the top gainers in the stock. These increased by 12-13 percent. Apart from this, metal stocks like Tata Steel, Hindalco, and SAIL have gained 2-5 percent.
focus on banking sector
Nifty’s bank index has reached near 40,000 points. 12 major banks are included in this index. Despite the good results of HDFC Bank, its stock declined. Experts say that the reason for this may be the already rapid increase in it.
Other banking stocks like Punjab National Bank, State Bank of India, IndusInd Bank, and Federal Bank also saw heavy buying on Monday.
Buying in Reliance Industries
The market capitalization of Reliance Industries, which does business from oil to telecom, has exceeded Rs 18 lakh crore. The company’s result will be declared on Friday. It has also announced a few deals recently.
Reliance’s stock hit a new high of Rs 2,744.95 and closed with a gain of 0.26 per cent.
decrease in corona cases
The number of corona cases in the country has been decreasing for the last several weeks. Active cases have dropped below two lakh for the first time in seven months. The pace of vaccination against Corona has also increased across the country. About 98 crore people have been vaccinated. Of these, 29 percent are people taking both doses of the vaccine.