Intraday trade sees Nifty conquer 10,000

Mumbai: The NSE 50-share Nifty on Tuesday hit a major milestone of 10k level mark for the first time in its history following a gush of local as well as domestic liquidity amid hopes about a recovery in economic and corporate earnings growth. 

While the benchmark Nifty opened the day at 10,010.55 and hit an intraday high of 10,011.30, a bout of profit booking in index heavyweights resulted in Nifty paring down most of its gains to end the session at 9,964.55, just 1.85 points lower than its previous sessions close. 

Meanwhile, the Sensex hit a record high of 32,374.30 before ending the day at 32,228.27, losing 17.60 points or 0.05 per cent. 

“It is an affirmation of the strength of the Indian economy, the structural reforms that are being implemented like GST and Insolvency and Bankruptcy Code (IBC) among others. The markets are factoring in corporate earnings growth followed by good monsoon and enhanced transparency with the implementation of GST. The valuations are above mean, but we are still away from the frothy valuations seen in 2007-08,” said Arun Thukral, MD & CEO of Axis Securities. 

“From a 3-5 year perspective, we continue to remain bullish on Indian markets and believe that equity will continue to outperform other asset classes given the slew of reforms that will pan out in its full form over the coming years,” he added. 

On Tuesday, the domestic institutional investors took some profits off the table at higher levels by selling equities worth Rs 209.50 crore while foreign portfolio investors (FPI) purchased shares worth Rs 270.77 crores.  

“Now that the psychological number has been conquered, it would be interesting to watch whether the Nifty is able to sustain its momentum at these levels. If that happens, it would create a very solid base for markets to stage their next leg of the rally,” said Kunj Bansal, executive director and CIO at Centrum Wealth Management. 

According to him, the markets are likely to consolidate around the current levels as the results season has failed to give many positive surprises. 

From its base value of 1,000 in November 1995, the NIFTY 50 reached the 2,000 mark in December 2004, taking 9.1 years to double. Since then, the journey of NIFTY 50 was swift wherein it reached the 6,000 mark in only 2.9 years. It took another 6.4 years to reach the 7,000 mark in May 2014 from 6,000 in December 2007. While it took only 2.8 years to reach the 9,000 level mark in March 2017 from 7,000, the latest 1,000 points rally was made in just 4.3 months.