The BSE Sensex and Nifty ended higher today in the special ‘Muhurat trading’ session to mark the festival of Diwali. This marks their fifth gain in a row.
Energy sector reforms announced by the government and higher global markets have lifted the sentiment in Indian markets.
The Nifty ended above the psychological level of 8,000 after it rose 18 points. The Nifty closed at one-month high of 8,014, its highest level since September 24. The Sensex ended 63 points higher at 26,851.
The gains were broad-based with all the sectoral indices on the BSE rising in today’s session. The broader markets outperformed, with the BSE midcap and smallcap indices rising over 1 per cent.
JSPL was the biggest gainer among Nifty stocks, rising 3.5 per cent. Tech Mahindra, Bajaj Auto, Ultra Tech Cement and Asian Paints rose over 1 per cent to be other major Nifty gainers.
Shares of Wipro fell 4 per cent after the IT major missed the earnings estimate in the September quarter. It was the top loser in the 50-share Nifty.
From last year’s Diwali to this Diwali, India’s bluechip indices Sensex and Nifty ended with more than 25 per cent gain. Buying by foreign funds, a stable government at the Centre and hopes of big bang reforms are the three big triggers that have lifted domestic stock markets to record highs during the period. The gains have been bigger in broader markets with midcaps and smallcap indices surging 48 per cent and 75 per cent.
Analysts expect the gains to continue in Indian markets but not to that extent compared from last Diwali.
Nilesh Shah, MD & CEO of Axis Capital, says the handsome returns from the previous Diwali are unlikely to be repeated till the next Diwali but investors can still expect double-digit returns. The polarisation between the largecaps and midcaps are likely to narrow down, he added.
Brokerage firm Karvy Stock Broking has put out a Sensex target of 29,300 by next Diwali, a gain of nearly 10 per cent.