Sensex, Nifty hit record closing highs on hopes of vaccine, faster economic recovery


The NSE Nifty 50 index closed 1.08 per cent higher at 13,109.05, while S&P BSE Sensex climbed 1.15 per cent to 44,655.44.

IT firm Infosys was the biggest gainer, rising 3.4 per cent. Large private-sector lender ICICI Bank also jumped 2.5 per cent. (Photo: Reuters)

Domestic benchmark indices on Tuesday closed at a record high following their best monthly gain since April. Market sentiments were positive since marker opening after official GDP data showed a small-than-expected contraction. Investor sentiments were also boosted by breakthroughs in developments for a vaccine.

In the month of November, India’s benchmark indexes climbed over 11 per cent each on the back of record inflows from foreign institutional investors (FIIs). On Tuesday, positive sentiments took over since market opening as official GDP figures for the second quarter showed that the economy contracted by 7.5 per cent, much less than what was predicted by economists.

The government hailed the lower GDP contraction and said that it is a major improvement over the 23.9 per cent contraction in the first quarter of the year.

The NSE Nifty 50 index closed 1.08 per cent higher at 13,109.05, while S&P BSE Sensex climbed 1.15 per cent to 44,655.44. It may be noted that the markets were closed on Monday on account of a holiday.

Despite the positive mood in the market and better-than-expected GDP data, India’s economy is not out of the woods yet. A survey released on Friday before the GDP data indicated that manufacturing recovery faltered in the month of November as coronavirus fears returned on the back of rising cases.

IT firm Infosys was the biggest gainer, rising 3.4 per cent. Large private-sector lender ICICI Bank also jumped 2.5 per cent.

Meanwhile, the Nifty Auto index ended 1.1 per cent higher after a handful of automakers reported monthly sales figures. Bajaj Auto advanced 2.2 per cent after reporting a near 5 per cent rise in November sales.

Among the best performers was the Nifty PSU Bank Index, which tracks state-run lenders, closing 2.9 per cent at its best level since August. Shares of RIL also rose by 1.3 per cent today.

Also Read | Sensex, Nifty edge up on economic recovery signs, vaccine hopes



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