Sensex rallies 221 points, Nifty ends above 15,850; banks, realty stocks lead

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Benchmark equity indices settled at record highs on Tuesday, extending gains for the fourth straight session. Fresh buying was seen across banks and index heavyweights such as Reliance Industries. Investors awaited the outcome of an upcoming Federal Reserve meeting for clues on monetary policy in the world’s largest economy going forward. Sensex settled at a record closing high of 52,773, up 221 points or 0.42%. After hitting an intraday high of 15,901, Nifty 50 settled at a new closing peak of 15,869, up 57 points or 0.36%. 

“Bulls were firmly in control today as FMCG & Paint stocks were sought after with the broader market also displaying renewed buying interest in high-quality Midcap names across sectors. Selective themes like Infra, Paper & MFI were in action today amidst high volumes on positive news flow,” said S Ranganathan, Head of Research at LKP Securities.

Gainers & losers

Buzzing sectors

On the sectoral front Nifty Realty climbed 1.32%, followed by Nifty Bank advanced 0.85%, Nifty FMCG index rallied 0.73%, Nifty IT index rose 0.23% and Nifty Auto index was marginally up about 0.01%.

On the downside, Nifty Pharma index lost 0.88% and the Nifty Metal index ended almost flat with losses of 0.05%.

Broader market

The BSE MidCap index settled the day 0.6% higher at 22,907 amid gains in GMR Infra, Future Retail, Whirlpool of India, and Crisil. The BSE SmallCap index ended at 25,186 with gains of 0.44% propelled by gains in Srei Infra, Reliance Industrial Infrastructure, Insecticides, and Action Construction Equipment.

Global markets

European shares rose across the board while most Asian stocks advanced on Tuesday, 15 June 2021. Investors looked forward to a much-anticipated Federal Reserve policy meeting to see if the U.S. Central Bank would signal any change to the U.S. monetary policy outlook.

The U.S. markets closed at a record on Monday. The Nasdaq Composite jumped to a record high on Monday as investors rotated back into growth-oriented stocks ahead of a key Federal Reserve meeting. The Nasdaq Composite gained 0.74% to an all-time closing high of 14,174.14. The S&P 500 also cruised to another record close, rising 0.18% to 4,255.15. The Dow Jones Industrial Average lagged, dipping 85.85 points to 34,393.75.

The Fed’s two-day policy meeting will likely dominate investor behaviour this week. Although the central bank is not expected to take any action, its forecasts for interest rates, inflation and the economy could move the markets. Fed Chairman Jerome Powell will speak to the press after the central bank issues its statement Wednesday.