BSE Sensex hits new record high as Larsen & Toubro, HDFC share prices soar, outlook divided

Written by PTI | Mumbai | Updated: Jan 24 2014, 03:31am hrs
BSE SensexBSE Sensex scales new high of 21,373.66, up 35.99 points. (AP)
The BSE Sensex today closed at fresh record high of 21,373.66 points by gaining 35.99 points on funds buying driven by strong corporate earnings by Larsen & Toubro (L&T) and housing finance major HDFC.

Markets Top Gainers, Markets Top Losers

The BSE Sensex rose further by 35.99 points, or 0.17 per cent, to settle at new record high of 21,373.66 points, just a day after it scaled the peak of 21,337.67 points. In the previous three sessions the 30-share index has gained 274 points.

The gauge still remained a little away from an intra-day high of 21,483.74 touched on December 9 when the results of Assembly elections were announced. It touched an intra-day high of 21,409.66 today.

The broad-based National Stock Exchange index NSE Nifty rose by 6.70 points, or 0.11 per cent to 6,345.65, after touching a high of 6,355.60.

Brokers said trading sentiment remained bullish on steady inflow of corporate earnings by bluechips, latest by Larsen and Toubro.

Attractive third quarter earnings were announced by HDFC Ltd, Amara Raja Batteries and Torrent Pharmaceuticals Ltd this week.

Larsen and Toubro surged 2.81 per cent to Rs 1,033 after the company posted better than expected profits for the third quarter ending December 31.

They said the buying activity was so strong that poor performance in global markets failed to influence the sentiment.

However, fall in Reliance Industries and Mahindra & Mahindra (2.82 per cent) restricted the gains, they added.

In 30-BSE index components, 14 stocks gained while 16 ended lower.

The consumer durable index gained the most by rising 2.33 per cent to 5,726.80 followed by capital goods index by 1.84 per cent to 9,889.53.

The FMCG index rose by 0.14 per cent to 6,606.82 and healthcare index by 0.12 per cent to 10,329.94.

Gaurang Shah, Assistant Vice President, Geojit BNP Paribas Financial Services Ltd:

Cheerful day for the Indian markets despite the fact that there were weak overnight global markets & the Asian markets too were in deep red. The recovery on the Sensex & Nifty in the second half was lead by Cap Goods,FMCG & Healthcare while the draggers were Autos, Metals & Oil & Gas. We expect the up move to continue for tomorrow and on Monday next week before hitting the policy day on Tuesday on 28th Jan. Volatility is likely to gain steam as we move closer to the F&O as well.

Advised to book profits at higher levels on short term investments.

Mutual Funds: Top Profit-making Schemes

HIGHLIGHTS

* BSE index closes higher 0.17 pct; NSE index up 0.11 pct

* L&T gains 2.8 pct on earnings

* Overall situation remains sceptical -analyst

BSE Sensex closes at record high, but uncertainties linger

(Reuters) - India's benchmark BSE index hit a second consecutive record closing high on Thursday after Larsen & Toubro surged as its quarterly profit margins beat expectations, although falls in rate-sensitive auto makers prevented broader gains.

Indian shares have been flirting with record highs since late last year, driven largely by heavy buying of blue chip exporters by foreign investors, worth $20 billion in 2013.

However, a slew of uncertainties are clouding the outlook, including general elections due by May, U.S. Federal Reserve tapering, and more recently, a recommendation from the central bank to overhaul monetary policy.

"Overall the market remains sceptical, mainly on macro concerns. Though market participants remain confident about growth, the political situation is worrying. We are cautiously optimistic in the medium term," said Deven Choksey, managing director at KR Choksey Securities.

"We expect RBI to come back to the growth stand rather than controlling inflation, and we need to wait and watch that."

As part of those recommendations, the Reserve Bank of India wants to prioritise taming high consumer inflation, raising the prospect of higher interest rates and, thus, concerns ahead of its policy review on Tuesday.

The benchmark BSE index rose 0.17 percent to a record closing high of 21,373.66, marking four straight days of gains during which it has gained 1.5 percent.

still below an all-time high of 21,483.74 hit on Dec. 9.

The broader NSE index gained 0.11 percent to 6,345.65, just short of its record closing high of 6,363.90 hit on Dec. 9.

Foreign investors have remained buyers of Indian shares this year, with net purchases totalling 24.41 billion rupees ($394.70 million) so far.

Larsen & Toubro Ltd rose 2.8 percent after the company's October-December margins beat estimates, while other engineering firms such as Bharat Heavy Electricals Ltd gained 0.74 percent.

Shares in Raymond Ltd closed up 1.08 percent after the textiles maker reported late on Wednesday a more than four-fold increase in its October-December quarter net profit. .

However, rate-sensitive auto makers fell on worries that higher interest rates would curb sales by making financing vehicles more expensive.

Mahindra & Mahindra Ltd fell 2.88 percent and Tata Motors Ltd dropped 0.65 percent.

Shares in gold retailers, including Titan Co and Gitanjali Gems, rose sharply after ruling Congress party leader Sonia Gandhi wrote to the federal government for a cut in the record import duty on gold..

Shares in Biocon Ltd and KPIT Technologies fell after earnings disappointed some investors.

FACTORS TO WATCH

* Swiss franc gains after lending curbs; euro buoyant

* Brent eases towards $108, weak data stokes demand worries

* Euro zone lifts mood after Chinese data disappoints

* Foreign institutional investor flows