Market enters overbought zone

Mumbai: Sensex and Nifty-50 made another record high, rising for the seventh consecutive session, ignoring negative global cues. The domestic economic indicators continue to show recovery from the pandemic. This  along with second quarter earnings from IT majors led to fresh buying.

The Sensex came very close to the 62000 mark but profit taking pared gains to 459.64 points, with the index closing at 61,765.59 up 0.75 per cent.

The Nifty-50 closed at 18,477.05, up 138.50 points or 0.76 per cent after making a new high of 18,543.15.

"The intraday texture shows markets in an overbought zone," said an analyst from Kotak Securities.

Foreign portfolio investors were net buyers of equities worth Rs 512.44 crore while the domestic institutions were net sellers by Rs 1,703.87 crore.

The Nomura India Business Resumption Index rose to an all-time high of 108.8 for the week ending October 17 from 105 in the prior week and the pre-pandemic level of 100, with a broad-based rise across most sub-components.

The robust earnings performance from IT majors led to buying in IT stocks, the BSE IT index gained 1.98 per cent.

However, Brent crude oil price was near $85 per barrel  as the global energy crisis worsened and China's economy grew at a slower pace in the third quarter of 2021 pace, as per the latest data.