Private Banks Drive Sensex, Nifty to New All-Time Highs; Analysts maintain positive outlooks. | Top Vip News

Equity benchmarks Sensex and Nifty erased early losses to hit all-time highs above 74,150 and 22,450, respectively, in afternoon trade on March 6, supported by private banking stocks. With the bullish backdrop intact, analysts say Nifty may reach 22,700 in the coming sessions.

Sensex and Nifty closed 0.5 per cent higher at 74,098 and 22,482, respectively, on March 6.

India VIX, which measures volatility over the next few days, cooled 0.4 per cent to trade below 15.

“We maintain our positive bias and expect Nifty to head towards 22,700 next week where large caps would relatively outperform the broader market as the ratio between Nifty and Nifty 500 has bottomed,” analysts at ICICI Securities said.

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Structurally, the index may take a breather after witnessing a faster pullback. “We advise using the declines as an incremental buying opportunity since immediate support is at 22,000,” the analysts added.

However, the broader markets took a beating on March 6 when the Nifty Midcap 100 and Nifty Smallcap 100 indices fell as much as 2 per cent. This trend is likely to continue as small-cap valuations remain excessive, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Sectorally, the Bank Nifty index was the best sector performer on March 6 as it crossed 48,000 points led by gains in Kotak Mahindra Bank, Axis Bank, Bank of Baroda, Federal Bank and ICICI Bank.

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“A successful breakout of the 48,000 level is anticipated to push the index towards its all-time high. The overall outlook remains bullish and any dip towards the mentioned support level is considered a buying opportunity,” said Mandar Bhojane, Research Analyst at Choice Broking.

The stir in banking stocks came after liquidity in the banking system reached a surplus almost after three months, when the Reserve Bank of India (RBI) mopped up over Rs 40,000 crore from the market on 5 March.

On the other hand, Nifty Media was the top sectoral loser as it fell over 2 per cent, dragged down by Sun TV, Dish TV and DB Corporation.

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