MUMBAI: The stock market rose to a record close on Friday, the second time it did so during the week, but Christmas-eve celebrations were restrained as investors weighed the continued rise in already-rich share valuations against the so-far uninterrupted flows into equities.Benchmark indices rose roughly 0.5%, with the Nifty crossing 10,500 points for the first time, albeit briefly, after a late surge in tech shares provided an impetus to the market.
Dalal Street also achieved another milestone with the BSE's market capitalisation crossing Rs 150 lakh crore for the first time. At 49% so far in 2017, the growth in India's market value is the fastest worldwide.
The BSE Sensex rose 0.55% to close at 33,940.30 points after touching an all-time high of 33,964.28. NSE's Nifty gained 0.50% to close at 10,493 after touching a new record of 10,501.10. Advances outnumbered declines 1,576 to 1,168 across share categories on the BSE. Tech stocks were the best performers with TCS, Infosys and Wipro gaining 1-2% after Accenture raised its revenue forecast.
If the Nifty finishes past 10,500 early next week, it could touch 10,600 by the weekend, traders said. The financial markets will be shut on Monday on account of Christmas.
'No Near-term Risks Ahead'
Fund managers said the focus will shift to December quarter earnings starting January, while continued domestic purchases will ensure erratic foreign institutional inflows aren't missed temporarily.
"Market should go higher as there are no near-term risks ahead," said Mahesh Patil, CIO, Birla Mutual Fund. "Near-term outlook remains positive because of strong domestic inflows and December quarter earnings should also look good due to a favourable base." The Volatility Index or VIX — a measure of traders' perception of near-term risks in the market — fell 4.12% to 11.59%, extending recent declines. The BJP's electoral victory in Gujarat has swept away near-term uncertainty. The index, which touched a 10-month high of 18.26 on December 18 — the day of Gujarat election results — has fallen 36.5% since then.
On Friday, foreign funds bought shares worth a net Rs 107.87 crore. Domestic institutional investors made purchases to the tune of Rs 371.53 crore. Even as market participants paint a rosy near-term outlook, the undercurrent is sceptical because of pricey valuations.
The post Bulls add to festive cheer, Nifty touches peak of 10,500 appeared first on News Wire Now.