BSE Sensex crosses 27,000-pt mark, NSE Nifty past 8,000 as CAD gets comfortable

Written by PTI | Mumbai | Updated: Sep 2 2014, 23:24pm hrs
BSE SensexSensex up 151 points to close above 27,000-mark for first time; Nifty soars 55.35 points to end at new peak of 8,083.05. (PTI)
The BSE Sensex today rose by 151 points to surpass the 27,000-mark for the first time and NSE Nifty hit the record 8,100-level on buying by foreign funds triggered by narrowing CAD and better-than-expected growth.

Continuing its surge for the eighth day, the BSE Sensex hit a fresh life-time high of 27,082.85 in early trade. The barometer settled at all time closing high of 27,019.39, up by 151.84 points, or 0.57 per cent, over previous close.

It took 40 trading sessions from July 7 to September 2 to reach the psychological 27,000-level from 26,000.

The NSE Nifty crossed the key 8,100-mark to hit all-time intra-day high of 8,101.95. However, profit-booking at record levels trimmed part of gains and Nifty closed at 8,083.05 points, up by 55.35 points, or 0.69 per cent.

Brokers said sentiment bolstered on the back of continued capital inflows, driven by positive economic data.

The Current Account Deficit narrowed sharply to 1.7 per cent of GDP while economic growth rose to two-and-a-half year high of 5.7 per cent in the April-June quarter.

"Although the global cues were not very strong (US mkts were closed) and the economic data from the EU was weak, strong market sentiment carried the Sensex to record levels. It closed above 27000 for the first time in its history. The sentiment has been very positive as investors are buying into the India story which has seen some encouraging signs like improved GDP growth, likely funding support from Japan and soft crude prices. Having said that, while the market outlook is positive, investors need to be watchful of an impending correction," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.

The market also got a boost after Japan yesterday announced doubling of its private and public investment in India to about USD 34 billion over the next five years, they said.

Foreign portfolio investors (FPIs) bought shares worth Rs 554.14 crore yesterday.

Cipla, which launched a generic drug for asthma and chronic obstructive pulmonary disease in Germany and Sweden, was the biggest gainer among Sensex stocks. It soared by 5.23 per cent.

Other Sensex components which supported the key indices to hit fresh life-time high were Bharti Airtel (4.24 per cent), Sun Pharma (2.50 per cent), HDFC Bank (2.01 per cent), ONGC (1.15 per cent) and ITC Ltd (1.28 per cent).

Buying activity in small and midcap also gathered momentum, with the BSE smallcap rising by 0.91 per cent and midcap index by 0.84 per cent.