Market

Benchmark Indices Have Begun the Week by Recording Fresh Highs

The Indian benchmark indices have made an excellent start to the week. Both NSE Nifty 50 and BSE Sensex have recorded fresh highs in the early trading hours of Monday. The NSE Nifty 50 has shot up 0.50% to mark its new high of 12,320 points while the BSE Sensex has zoomed 250 points to hit its fresh peak at 41,868 points. 

The benchmark indices saw high volatility as the tension between Iran, and the United States of America escalated following an aerial attack by the US which took the life of Qasem Soleimani, the then Commander of Iran army’s Quds Force. Iran reacted by attacking the US army bases in Iraq through ballistic missiles. 

The share price of Infoysy shot up by 3% after the performance of Q3 exceeded the expectations. Furthermore, Infosys has raised its forecast of the revenue for the year, which is a significant positive. Also, Infosys investigated the whistleblower complaint and said that no financial discrepancies are found.

Also Read: Sensex Falls by 39 Points While Nifty Drops 10 Points

The market sentiment is positive as the index of industrial production (IIP) saw a growth of 1.8% in November 2019 following a contraction for three consecutive months. The government released the data on Friday. The IIP entering positive terrain is favourable, and the markets have reflected this in their performance. 

The smallcap and midcap stocks have begun the week on a positive note as both BSE smallcap and midcap indices have surged by 0.55% each. The analysts have predicted the year 2020 to belong to the small and midcap stocks and this surge in the small and midcap indices has supported it.

Asian markets have seen both ups and lows in the early trading hours of Monday ahead of the trade pact between the United States and China this week. Nikkei, a Japanese index is closed today on account of a holiday. The all three major indices were seen in negative terrain on Friday on the back of below-par job reports by the USA.

For any clarifications/feedback on the topic, please contact the writer at vineeth.nc@cleartax.in

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