FIRST TRADE: Sensex hits Mt 70,000; Nifty, too, hits fresh record high

Stock market today: The benchmark indices on Monday, December 11, hit their fresh record highs. The S&P BSE Sensex touched the coveted 70,000 mark for the first time. Last seen, the 30-share index of the BSE traded at 70,048.90. Nifty, too, hit a life high of 21,019.80 in the opening deals. 

The stocks have been on a record-setting spree on strong domestic conditions, even as stronger-than-expected US jobs data cut down expectations of a Fed rate cut in March.

Nifty Mid Cap 100 and Small Cap 100 opened in positive territory as well. Meanwhile, high-beta Nifty Bank was up 0.45 per cent at 47,475.5.

"Global and domestic cues favour continuation of the ongoing rally in the market despite high valuations. FIIs turning buyers, strong DII inflows, exuberant retail investors, and a thriving IPO market supported by strong economic fundamentals can sustain the rally in the short run, ignoring the high valuations. The overarching message from the RBI on Wednesday was that 7 per cent GDP growth for FY 24 is a conservative estimate. This is an indication of the growth momentum in the economy," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Vijayakumar added that a significant trend in the market is the outperformance of the Bank Nifty over the Nifty. Last week, while the Nifty appreciated by 3.5 per cent, Bank Nifty shot up by 5.5 per cent. 

Further, he said this outperformance is likely to continue, given the fair valuations of banking stocks, particularly the leading names. For the overall market, safety is now in large caps.

BUZZING STOCKS

Lloyds Metals and Energy shares were up over 4 per cent on BSE after the company's board gave its approval for the expansion of the iron and mining capacity by setting up two new plants.

Blue Dart Express shares were up over 2 per cent on BSE after the board approved the purchase of two leased aircraft by Blue Dart Aviation.

Spandana Sphoorty Financial shares were nearly 1 per cent on BSE after the board considered the issue and offered non-convertible debentures (NCDs) on a private placement basis in a meeting on December 13, 2023.

GMR Airports Infrastructure shares edged over 2 per cent higher and hit a 52-week high after, through block deals, GQG Partners, Goldman Sachs Trust, and Nomura India Investment bought a stake in the infra major.

SpiceJet shares were up over 3 per cent after its board announced it would consider fundraising.

Conversely, Madras Fertilizers shares were down 1 per cent after the company announced its plant in Chennai had been shut down since December 4, 2023.

Dr Reddy's Laboratories shares traded over 5 per cent lower after the company's Hyderabad facility received three observations. 

GLOBAL MARKETS

Asian shares started cautiously on Monday ahead of a week packed with a quintet of central bank meetings and data on U.S. inflation that could make or break market hopes for an early and rapid-fire round of rate cuts next year.

An upbeat payrolls report has already seen investors scale back expectations for a March cut by the Federal Reserve, though May remains priced at a 76 per cent chance.

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