Sensex, Nifty, Bank Nifty rally up to 75% in FY21; here’s what experts make of today’s trade

BSE Sensex and Nifty 50 rallied up to 70 per cent in the financial year 2020-21 (FY21) despite Coronavirus-led disruptions and concerns. During FY21, S&P BSE Sensex zoomed 68 per cent while the Nifty 50 index soared 71 per cent on the back of strong foreign portfolio investment inflows of Rs 2.6 lakh crore. While in absolute terms, Sensex gained over 20,000 points and Nifty 6,100 points. While Bank Nifty surged 75 per cent during the fiscal. The 30-share index touched its one-year low of 27,500.79 on April 3, 2020. It then zoomed to its record high of 52,516.76 on February 16, 2021. However, the headline indices ended the last day of the current fiscal in the negative territory, falling over 1 per cent. The sell-off in private bank and IT stocks outweighed the buying in stocks of PSU Banks, FMCG, and realty counters. Market breadth favored the bears, as 1,483 stocks declined while 1,397 advanced. A total of 199 scrips remained unchanged. In the broader market, the S&P BSE MidCap index ended 15 points or 0.07 per cent higher at 20,181.31 while the S&P BSE SmallCap index advanced 106 points pr 0.52 per cent to finish trade at 20,649.

S Ranganathan, Head of Research at LKP Securities

Markets opened weak as Joe Biden shall unveil his Infrastructure Package today with an increase in corporate taxes. HDFC twins and profit booking in IT stocks led the decline today even as Cement and Real Estate stocks saw keen investor interest. In the broader market, PSU Banks and select Pharma names were seen buzzing around.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The markets failed to get past 14950. The opening level of the Nifty was also the day high which means the sentiment for the day has been bearish. If we get past 14950, we can project a target of 15200-15300. If we continue falling and break 14500 on a closing basis, the index could drift further to test the recent low of 14250.

Sahaj Agrawal, Head of Research- Derivatives, Kotak Securities

A lot is happening on the global market front – a steep rise in dollar index and the US bond yields increasing. All of this has led to increased volatility in domestic markets. We believe the market remains in medium-term uptrend. The current momentum bottom is seen at 13450 and resistance seen at 15600; we expect range-bound activity with high volatility. Expect stock-specific action to continue – FMCG, IT and Insurance sectors trade with positive bias providing value buying opportunities.

Binod Modi, Head Strategy at Reliance Securities

Domestic equities traded lower today as concerns pertaining to a spike in Covid-19 cases and resultant restrictions continued to weigh on investors’ sentiments. Further, rise in USA treasury yields and the strengthening dollar index aggravated concerns. We believe that recent announcements of night curfews by various state governments and indication of lockdown by the Maharashtra state government certainly do not augur well for equities. Additionally, the strengthening the dollar index, which already gained 1.5% last week and surpassed 93 levels so far this week, has aggravated investors’ concern in emerging markets including India. Any meaningful correction in the market should only be creating an opportunity for bargain trading in quality stocks. Investors must focus on companies with strong earnings visibility and margins of safety.