Optimism around better-than-expected earnings and receding fiscal deficit concerns gave the rally a leg, which helped the Nifty and the Sensex scale 10,887.50 and 35,507.36 at one point during the day, respectively. However, as the day progressed, markets cooled off, hurt by profit-booking in metals, oil and pharma counters. In the end, the Sensex settled at a fresh record of 35,260.29, adding 178.47 points or 0.51 per cent, while the NSE Nifty index was up 28.45 points or 0.26 per cent to close at 10,817.00 today.
The domestic equity market ended at yet another peak today amid all round optimism over the economy. Firm global cues and key developments such as a reduction in additional borrowing and likely 100 per cent FDI in private banks gave a major impetus to the bulls. The broader Nifty50 index of the NSE closed above 10,800 for the first time. Meanwhile, The Goods and Services Tax (GST) Council, which will meet today, is likely to take up rationalisation of rates of about 70 items, of which at least 40 are services. Amendment in rules may also be taken up to simplify filing and plug some of the loopholes.
After opening with a significant upward gap and remaining in a range in the first half of the session, the Nifty today lost 100-odd points from the day's high. During the process, it formed a black/red candle on daily chart as it closed lower than its opening level. Midcap and smallcap stocks saw strong selling pressure, which is a cause of concern. However, the index is still in the positive territory. Market experts see no sign of exhaustion but expect Nifty to face resistance at the 10,900 mark tomorrow. It should trade in the 10,900-10,975 range in the coming week.