Mumbai: The Nifty soared to a record high on Tuesday tracking gains in global stocks after pro EU centrist Emmanuel Macron won the first round of the French Presidential election easing fears about a Brexit like situation in the Eurozone region. The Nifty scaled above the 9,300 level mark for the first time and closed the session at 9,306.60, gaining 88.65 points or 0.96 per cent. The BSE 30-share index surged 287.40 points or 0.97 per cent to end the day at 29,943.24, just 81 points shy of its all-time high of 30,024.74.
“Clearly, the sentiments are quite positive. While, there is not much growth expectation from India Inc’s March quarter numbers, the strong rally in markets suggests that investors have started to factor in strong corporate earnings growth for FY19 and FY20. However, if one looks at the out-performance of the mid-cap and small-cap segment over the large cap during the last one year, valuations appears to be little expensive,” said Kunj Bansal, executive director and CIO, equity, Centrum Wealth Management.
While the 50-share NSE Nifty has hit an all-time high, only eight of its constituents primarily from the financial services sector have managed to hit record levels till date. They include HDFC, HDFC Bank, Indiabulls Housing Finance, Kotak Mahindra Bank, Ultra Tech Cement, Grasim Industries, Gail India and IndusInd Bank. According to derivative analysts, traders have started creating fresh long positions in the May futures and options contracts, which suggests that they are expecting the markets to climb further high. However, any escalation could trigger risk aversion and profit booking.
