A strong rally in Reliance Industries boosted sentiment on Dalal Street on Friday with the Nifty closing 98 points higher at 15,436 — an all-time high. Decreasing new daily Covid-infection numbers boosted confidence for investors.
The sensex closed 308 points up, at 51,423, just about 2% from its all-time peak of 52,517 recorded in mid-February. After trading sideways for several weeks, RIL on Friday closed 6% higher at Rs 2,095. Surprisingly of the 30 sensex stocks, a majority, 18, closed lower, indicating how skewed the market was during the session.
According to Joseph Thomas of Emkay Wealth Management, the buoyancy in the market stemmed from improving pandemic related conditions — broad indications that it has actually peaked out. “This gives greater certainty about the future in terms of the likely relaxation of lockdown conditions in the major cities across the country, and also a faster return to normalcy.” Going ahead, monetary policy meeting next week, the rate of rollout of vaccines and also the number of new daily infections would decide the market’s direction.