Stock Market: Sensex hits 57,000 mark for first time, Nifty near 17,000

On Tuesday, Indian stock markets extended their rally scaling new highs, led by information technology stocks and ahead of the release of key economic data. The Sensex hit 57,000 marks for the first time. At 09:30 am, the benchmark index was up 0.21% at 57,007, while the Nifty hit a record high of 16,988.

The surge in equities was also bolstered by US Federal Reserve chairman Jerome Powell’s comments that the withdrawal of stimulus will be gradual. Powell has said the Fed may start paring bond purchases this year but is in no hurry to raise interest rates and will be guided by data on covid-19 risks. However, he didn’t give a specific timeline for scaling back stimulus.

The US Fed’s dovish stance has kept US bond yields and the dollar lower, always considered positive for emerging markets such as India, analysts said. “The festive season has begun in Indian and Indian equity markets as well. Indian equity markets are showing strong resilience and climbing all walls of worry that is a clear sign of a strong bull market”, said Santosh Meena, head of research, Swastika Investmart.

Indian economy is witnessing a strong recovery despite being hit hard by the Covid second wave. It is most likely that we are not going to be hit by the third wave as badly as expected earlier on the back of speedy vaccination and some kind of herd immunity, analysts said.

Meanwhile, India’s April-June GDP data is due for release later today and will show the impact of state-level lockdowns to stem the resurgence in covid infections during the second wave