The domestic market made a muted-to-lower opening on Wednesday as Asian markets retreated on reports of blasts in Poland that local authorities claimed to be made by Russian-made missiles.
However, the domestic market reversed early losses in the session, with surpassing the 18,400 mark and trading flat with a positive bias, while the 30-scrip gained 0.17% or 103.84 points at the time of writing.
The two benchmark indices hit new 52-week highs on Wednesday at 18,442.15 for Nifty50 and 62,052.57 for Sensex. Not just that, the sectoral index has also recorded its new 52-week high today at 42,558, after scaling a record high of 42,450 points on Tuesday.
The sectoral index has surged 20% on a YTD basis, already outperforming the headline index Nifty, and market experts peg enough room for further outperformance of the sector to continue.
Bullish momentum continues to sustain in the domestic market. A good indicator of this is a decline in the volatility barometer , which has fallen from over 18 points in October to 15 levels at the moment, while the US is also on a downtrend, states Dr V K Vijayakumar of Geojit Financial Services.
Weakening bond yields in the US and India are adding to the bullish construct for equity markets.
“Since the drivers of the current rally are high-quality large-caps particularly in banking and IT, mid and small-caps are unlikely to participate in the ongoing rally. Investors may stick with quality,” Vijayakumar adds.
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