The faster pace of vaccinations, along with the vastly improved economic scenario, boosted India's key equity indices during the special "Muhurat" trade session on Thursday. Besides, the reduction in Central excise on petrol and diesel buoyed investors' sentiments.
A special hour-long session is held every year on Diwali day - the Muhurat trademarks the start of the Hindu New Year for the domestic equity market. The trade saw the key equity indices - S&P BSE Sensex and NSE Nifty50 -- make handsome gains from the start.
However, profit-booking was triggered mid-session after the initial upswing, but, nevertheless, the market was able to close in the green. According to market observers, the special session to mark Samvat 2078 witnessed healthy buying in almost all sectors.
The Nifty50 of the National Stock Exchange (NSE) gained 87.60 points, or 0.49 per cent to close the session at 17,916.80 points from its previous 17,829.20. Similarly, the 30-scrip Sensex made gains during the trade session.
It closed at 60,067.62 points, up 295.70 points, or 0.49 per cent, from its previous close at 59,771.92. In Samvat 2077, both the Sensex and Nifty delivered around 40 per cent returns.
"After a great year for equity markets, investors are looking forward to markets continue rising though not at the same pace. Global headwinds in the form of rising inflation and withdrawal of monetary stimulus may impact the momentum, but strength in Indian macros and improving micros may help offset these," HDFC Securities MD and CEO Dhiraj Relli said.
"Investors need to conduct portfolio review, asset allocation review, and raise the quality of stocks held in their portfolio."
Geojit Financial Services' Chief Investment Strategist V.K. Vijayakumar said: "After the spectacular returns in Samvat 2077, investors should expect modest returns only, say in low teens, in Samvat 2078."
"This Samvat is likely to be very volatile, unlike last Samvat. Rising inflation would be the biggest known threat to the market. Rate hikes by the Fed can happen by end 2022 or, perhaps, earlier than that if persistent inflation and the bond market forces the Fed's hands."
The special hour-long session is held every year on Diwali day to mark the start of the Hindu New Year, considered to be auspicious for stock market trading.
It is believed that the Muhurat trading on this day brings wealth and prosperity throughout the year. This ritual has been observed for ages by the trading community.
