Harshit Singh
- Sensex and Short Nifty both reached record highs.
- Just under 20,000 is the Nifty threshold.
- ITC shares increased on news of the demerger of the hotel industry.
The Nifty 50 and the Sensex both reached fresh all-time highs on Thursday, as benchmark stock market indices concluded on a positive note.
The Sensex rose 0.71 percent to settle at 67,571.90, while the Nifty 50 index closed 0.74 percent higher at 19,979.15, moving closer to the important 20,000 level. The momentum garnered by broader market indices reversed the losses witnessed in early trade.
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The surge was headed by Reliance Industries, a heavyweight company, which rose 1.54 percent after the demerger with Jio Financial Services led to a new price discovery. Other top gainers were Nifty Bank, Nifty FMCG, and Nifty Pharma.
However, the Nifty IT index fell 0.66 percent as IT stock prices fell. Notably, Infosys was the biggest loser on the Nifty 50 prior to the release of its June quarter earnings.
Individual equities also experienced major changes, with shares of ITC rising 2.78 percent to a new record high on rumours that the company’s hotels division might be demerged in August.
Additionally, Dr Reddy’s Laboratories increased by 2% following the US FDA’s clean inspection result for its Andhra Pradesh facility.
According to Stock Market Today’s (SMT) V.L.A. Ambala, a SEBI Registered Research Analyst, bearish patterns are being overlooked as the market keeps setting new records and goes on a “bull run”
“On the technical front, after a minor gap down opening, the index traded sideways with low volumes in the first half,” stated Riches Vanara, Technical And Derivatives Analyst, StoxBox. However, we witnessed some excellent short covering in the second half, which caused call writers to become seriously trapped as the index hit a new all-time high, keeping the mystical figure of 20,000 inches at a distance.
