After closing for the first time yesterday at 49000, the stock market is going on sale on Tuesday. This morning, the BSE Sensex is down by 104 points at 49,164.50 and the Nifty is trading at 14,462.15, down 23 points.
The BSE Sensex rose 487 points yesterday to close at the all-time high. There was strong buying by foreign institutional investors, with strong quarterly earnings by companies and led by Infosys, HDFC Bank, HDFC and HCL Tech. The 30-share BSE Sensex closed up 486.81 points, or one percent, at 49,269.32 points. At one time during trading it had also gone to the highest level of 49,303.79 points. Similarly, the National Stock Exchange’s Nifty jumped 137.50 points, or 0.96 percent, to close at 14,484.75 points. It also touched the 14,498.20 mark during trading.
Investors’ confidence strengthened
Vinod Modi, head of strategic affairs, Reliance Securities, said that bulls dominated the domestic stock markets and both the benchmark indices closed at new record levels. Investors’ confidence has been strengthened by the better quarterly financial results of TCS and D-Mart. He said, with the announcement of better improvement in Kovid-19 cases and to start the vaccination process from January 16, the situation has become satisfactory for the market. The market is expected to touch new highs in the near future, with the key economic data expected to be better with the company’s earnings again. Modi said that FPI (Foreign Institutional Investor) investment may continue further with the state of the global economy, the stance of central banks and the weakening of the dollar.