The fall in the market was cushioned by gains in Bajaj Auto, Hindustan Unilever and TCS. Shares of Bajaj Auto jumped over 10 per cent after it posted better-than-expected jump in profits for the December quarter.
A day earlier, the Sensex
had vaulted past the historic 50,000-mark. However, failed to sustain on to the gains as investors judged recent gains as excessive. Since November, the Indian markets
have rallied more than 25 per cent amid record inflows by foreign investors. And from the March lows, the benchmark indices are up more than 90 per cent.
Not just India, but a slew of emerging markets
posted record highs this week on hopes of another round of stimulus in the US under the Joe Biden presidency. Already, dovish outlook adopted by major central banks has helped fuel an unprecedented appetite for risk assets.
Earlier this week, Treasury secretary-designate Janet Yellen urged the Congress to “act big” on spending to shore up economic growth, while defending President Biden’s $1.9 trillion coronavirus spending plan. The former Fed chair’s comments gave more fodder to the bulls to take stocks higher.
Market players said ahead domestic investors could keep position light ahead of the Union Budget on February 1. Besides, budget cues investors will keenly eye result announcements. Nine of the 12 Nifty
50 companies that have declared their results for December quarter surpassed analyst estimates.
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