FIRST TRADE: Sensex, Nifty scale record highs amid rally in global shares

Stock market today: Domestic equity indices Sensex and Nifty scaled new heights in the morning deals on Thursday, March 7, where Nifty surpassed the 22,500 mark for the first time. The rally can be attributed to positive Asian peers after US Federal Reserve Chair Jerome Powell assured likely rate cuts this year and ruled out the near-term risk of an economic recession.

Last seen, the 30-scrip Sensex traded 0.06 per cent, or 46.43 points, higher at Rs 74,132.42, and the NSE Nifty was trading 21.8 points, or 0.11 per cent, at 22,498.85. 

Meanwhile, Nifty Mid Cap 100 and Small Cap 100 traded in positive territory. Nifty Bank was flat with a negative bias at 47,936.85. 

"There are some distinct trends in the market now. One, large caps are outperforming mid- and small caps. Two, Bank Nifty is emerging stronger, led by private sector majors like ICICI Bank, Axis Bank, Ind Sind Bank, and Kotak Bank. Three, regulatory action on some NBFCs has impacted sentiments in the entire NBFC space, which, in turn, is improving sentiments in the high-quality private banking space. The 3.7 per cent decline in the small-cap index this week, when Nifty appreciated by 0.5 per cent is a big underperformance. This trend is likely to continue since valuation in the broader market remains highly elevated and the regulator has sent a clear message regarding the froth in the segment," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Dr. Vijayakumar added that investors have time, even now, to switch from small caps to fairly valued large caps and partly to fixed-income products. At this stage in the market, safety should be given priority over return.

BUZZING STOCKS

Jupiter Wagons shares were up over 6 per cent after the company received an order worth Rs 957 crore from the Railway Ministry.

HAL shares were up over 2 per cent after the order amount increased after the amendment in the LCA IOC contract.

GPT Infraprojects shares were up over 4 per cent after an order worth Rs 135 crore was received from North Central Railway.

IRB Infrastructure Developers shares were up over 2 per cent after toll collection in February increased from Rs 351.8 crore to Rs 462.2 crore year-on-year (YoY), up 31.4 per cent. 

Allcargo Gati shares were up over 1 per cent after the company released its business update. 

Prataap Snacks shares were up over 1 per cent after it rejected the claims of tax invasions. 

Conversely, M&M shares were down over 3 per cent after 0.8 per cent equity changed hands. 

NLC India shares were down over 3 per cent after the government announced yesterday that it would sell a 5 per cent stake in the company. 

Indraprastha Gas shares were down over 1 per cent as the company reduced CNG prices.

GLOBAL MARKETS 

Shares rallied in relief on Thursday while the dollar nursed losses after the world's most powerful central banker reassured investors that US rates would fall this year, setting the scene for policymakers in Europe.

Japan's Nikkei reversed earlier gains, and the yen jumped past the 149 per dollar level to the highest in a month as momentum builds that a move from the Bank of Japan to end negative interest rates could come as soon as this month.

(With inputs from agencies.) 

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.