Nifty, Sensex end at all-time highs on financials boost

December 28, 2020 08:09 PM

BENGALURU (Reuters) - Indian shares closed at record highs on Monday, driven by gains in private-sector lenders, as global sentiment improved after U.S. President Donald Trump approved a pandemic relief package.

The Nifty rose 0.9% to 13,873.20, gaining for a fourth straight session, while the benchmark Sensex closed 0.81% higher at 47,353.75.

Both the Nifty and Sensex have gained about 7% so far in December.

Global shares also advanced, with the MSCI world index firming 0.3% as Trump signed into law a $2.3 trillion spending package.

“Absence of negative trigger is more relevant now, there is no sign of reversal of liquidity or interest rate trajectory and as long as those signs are not there, markets will continue to chug along,” said Deepak Jasani, head of research, HDFC Securities.

Stock markets around the world have rebounded strongly from pandemic lows hit in March, thanks to a clutch of measures taken by global central banks to cushion the economic fallout from the COVID-19 pandemic.

However, analysts have warned that stocks remain overvalued and are due for a correction.

In Mumbai trading, the Nifty Bank Index settled 1.57% higher. Top lenders HDFC Bank Ltd and ICICI Bank Ltd were the biggest boost to the Nifty, closing up more than 1% each.

The Nifty PSU banking index settled 2.69% higher, led by a 4% surge in state-run Canara Bank Ltd.

Shares in India’s most valuable firm, Reliance Industries Ltd, closed up 0.43% to record a third straight session of gains.

Bucking the trend, pharmaceutical firm Biocon Ltd slid nearly 4%, dragging the Nifty Pharma Index 0.27% lower.

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