Sensex above 59,000, Nifty near 17,600 —what's fuelling rally in the market?

Domestic equity benchmarks surged for the second consecutive day on Monday. On the first trading day of the week, headlines indices Nifty50 and the S&P BSE Sensex surged over 1.25% to reclaim 17,500 and 59,000 respectively. At 1 pm, Nifty gained 215.35 points to 17,569.40 and the Sensex surged 754.52 points to trade at 59,008.34. Meanwhile, all broader and sectoral indices, except for Nifty pharma and health care, surged in Monday's intraday trade. The 12-share Bank Nifty too zoomed past 36,000-mark as the banking index gained 1.5%. From FIIs data to covid vaccination drive, there were 5 factors that could have significantly drove the upward rally on the Dalal Street. 

1. FIIs December data 

Foreign Institutional Investors (FIIs) net bought shares worth Rs. 575.39 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs. 1,165.62 crore in the Indian equity market in December.  "FIIs December data may provide some relief to market participants," said Gaurav Garg, Head of Research, Capitalvia Global Research Ltd.  

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2. Technical data:  

Technical indicators hinted at positivity in the market. " If the market sustains the level of 17200-17300, we can expect it to trade till the range of 17500-17600," said Gaurav Garg. 

3. Covid vaccination for teenagers kick-start 

Covid vaccination for teenagers in the age group of 15 to 18 years have kick-started across the country on Monday. It comes after the Union Health Ministry had said that that Bharat Biotech’s Covaxin will be administered to children in two doses 28 days apart. 

4. December 2021 auto sale data: Despite chip shortage, auto industry threw mixed performance as the Maruti Suzuki, which remained at the top position in the sales of passenger vehicles, witnessed  decline in overall December sales YoY. Maruti Suzuki recorded total sales of 1,53,149 units in December 2021 compared to 1,60,226 units in December 2020. Tata Motors, which replaced Hyundai Motor India as the second-largest seller of passenger vehicles (PV) in the domestic market in December 2021, reported significant jump in sales number on yoy. Tata Motors sold 1,99,633 units in the domestic & international market, for Quarter ended December 31, 2021 against 1,58,218 units a year ago in the same quarter.  

5. Support from market heavyweights 

Reliance, HDFC Bank, Bajaj Finance, Bajaj FinServ, TCS, Asian Paints, Larsen and Toubro, State Bank of India, Eicher Motors, Coal India and Tata Motors surged up to four per cent in the afternoon trade.