Sensex zooms 704 points to hit record closing of 42,597; Nifty settles at 12,461

Journey of Sensex:

NEW DELHI: Equity indices continue to surge for the sixth straight session on Monday with both the BSE and NSE indices scaling fresh record highs, led by gains in banking and financial stocks.

Gold prices extended gains after a rally last week

After hitting an intra-day high of 42,645, the benchmark BSE sensex settled 704 points or 1.68 per cent higher at record closing of 42,597; while the broader NSE Nifty finished 197 points or 1.62 per cent higher at fresh peak of 12,461.

On the NSE platform, sub-indices Nifty Private Bank, Financial Services and Bank gaining as much as 3.28 per cent.
IT stocks too gained after a report said that US President-elect Joe Biden planned to ease policy on work visas, with his victory also boosting broader Asian markets and aiding domestic sentiment.

Most market participants are hoping the Biden regime would spell good news for Indian companies, especially IT, and domestic financial markets.

“Investors feel that with this new president, there will be more flexibility on the policy front,” Anita Gandhi, director at Arihant Capital Markets told news agency Reuters.
“This (policy) will help the many Indian IT employees working overseas,” he added.

Wall Street notched its best weekly performance last week since April as key indices in the US registered weekly gains of 7-9 per cent. On the currency front, rupee surrendered most of its early gains to trade just 4 paise higher at 74.04 against the US dollar in late afternoon trade.

Meanwhile, foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,869.87 crore on Friday, according to provisional exchange data.

Goods and Services Tax dues to States could touch ₹7 lakh crore by 2022