India's NSE index surged past the psychologically important 8,000 level for the first time on Monday as blue-chips such as ICICI Bank gained after better-than-expected quarterly economic growth data.
Data showing India's economy grew a faster-than-expected 5.7 percent in the April-June quarter has reinforced hopes that Prime Minister Narendra Modi's election victory nearly four months ago will help spark a recovery in investments and confidence.
The market opened up with a huge gap on the back of better annual GDP numbers, which rose to 5.50% v/s 4.60% of the last year. Technically, Nifty closed above an important psychological resistance level of 8000, which is something really extra ordinary for the Indian markets and since the result of exit polls of the election Nifty rose by 1000 points. Outcome on the coal block allocation was also not too harsh as it was expected and that has also helped the market to close at days highest around 8034. Auto, Metal, Power, Infra and banks did well. Technically, the Nifty has next major hurdle between 8050 and 8060. Any strong reversal from these will be negative for the Nifty in the short term as in that case it may even fall 7970 again. However sustenance above 8060 should lift indices beyond 8100 levels," says Shrikant Chouhan, Head- Technical Research, Kotak Securities.
Resources firms rallied late in the session after the country's top government lawyer proposed to the Supreme Court that about 40 of the 218 coal mines it declared illegal should not be taken back from the companies that operate them as they were either producing or were close to producing.
The court is due to rule later in the day about whether to cancel the allocations of coal blocks it ruled as illegal last week, which could create uncertainty in a sector that generates the bulk of the country's electricity.
"We seem to be in the initial stages of a bull phase. Reasonable valuations relative to other emerging markets, coupled with healthy growth prospects for the economy, lead us to believe that we should move to a bull phase over the next few years," said Motilal Oswal, chairman of Motilal Oswal Financial Services Ltd.
The 50-share NSE index rose as much as 1.01 percent to a record high of 8,035, surpassing its previous all-time high hit on Aug. 25. It ended up 0.92 percent.
The BSE index rose as much as 1 percent to its second consecutive record high at 26,900.30.
Foreign investors, key drivers of the market rally this year, have bought shares worth $13 billion in 2014 so far despite some geopolitical tensions, on continued optimism about an improving economy and expectations Modi will usher in significant reforms.
Blue-chip stocks led the gainers. ICICI Bank gained 2.7 percent, while Larsen & Toubro rose 3.3 percent.
Axis Bank gained 2.1 percent, while Oil and Natural Gas Corporation rose 1.1 percent.
Maruti Suzuki India ended 4.6 percent higher after marking a record high of 2,930 rupees, after vehicle sales rose 26.9 percent in August from a year earlier, beating some expectations.
Reliance Industries rose 1.5 percent after Reuters reported that the company plans to invest about $13 billion in energy projects, including a 400,000-barrel-per-day (bpd) crude refinery at its Jamnagar complex.
Meanwhile, metal stocks rose on hopes that the Supreme Court would not cancel the allocations of coal blocks in its ruling later in the day.
Jindal Steel and Power surged 6.4 percent, while Hindalco Industries jumped 3.6 percent.
Mid-cap state-run banks gained on short-covering after better-than-expected GDP data and central bank Governor Raghuram Rajan's comments noting bad loan are not "scary" as key reasons.
Canara Bank rose 3.8 percent, Syndicate Bank ended up 3.6 percent, Andhra Bank advanced 7.1 percent, and Allahabad Bank closed 3.8 percent higher.
Bharti Airtel rose 1.6 percent after it said a unit signed an agreement to acquire more than 2.7 million subscribers of yuMobile.
However, among stocks that fell, IRB Infrastructure Developers Ltd lost 1.3 percent after Citigroup downgraded the stock to "sell" from "buy", citing valuation, moderate return ratios and high leverage."
Nifty ends above 8,000-mark for 1st time; Sensex at new peak
(PTI) Stocks markets continued their winning streak for the seventh straight session with Nifty today breaching the 8,000-mark for the first time and the Sensex closing at new life-time high of 26,867.55 boosted by positive economic growth data for the April-June quarter.
The NSE Nifty barometer today surged passed the 8,000 mark for the first time and soared to hit an all-time intra-day high of 8,035 and settled 73.35 points, or 0.92 per cent, higher at record close of 8,027.70, surpassing its earlier record high 7,954.35. It also surpassed its previous intra-day record of 7,968.25 hit on August 25.
It took 78 trading sessions from May 12 to September 1 to reach the 8,000-mark from 7,000 points.
The BSE 30-share barometer Sensex spurted by 229.44 points, or 0.86 per cent, to close at new life-time high of 26,867.55, breaking its previous closing high of 26,638.11 reached on August 28.
During today's session, it touched a new high of 26,900.30, improving its previous intra-day record of 26,674.38 hit on August 28. The gauge had gained about 324 points in the previous six straight sessions.
Sentiments turned bullish as foreign capital inflows picked up after economic growth improved to two-and-half year high of 5.7 per cent in the April-June quarter, brokers said.
HeroMoto was the best gainer today among the 30-share Sensex as it jumped 5.79 per cent to Rs 2,759.25.
Strong sales number in August posted by some auto makers, including Maruti Suzuki, was another positive factor.
Maruti Suzuki's shares climbed 4.71 per cent to close at an all-time high of Rs 2,915.50.
Mixed global cues with a firming trend in other Asian markets and a lower opening of the European markets also influenced trading sentiments here.
Other Sensex-related gainers were Larsen and Toubro, Hindalco,ONGC, GAIL, Reliance Industries, Cipla, Coal India, Sesa Sterlite, Tata Power, Tata Steel, Infosys and NTPC.
Sectorally, BSE Metal sector index rose (2.79 per cent), followed by Capital Goods (2.75 per cent), Realty (2.72 per cent) and Power (2.60 per cent).