Sensex, Nifty set new record after Prez Pranab Mukherjee unveils Narendra Modi agenda

Written by Reuters | Mumbai | Updated: Jun 9 2014, 23:57pm hrs
BSE SensexThe BSE Sensex index gained as much as 0.98 percent to hit a record high of 25,644.77. (Reuters)
Continuing their record-breaking spree, equity benchmarks BSE Sensex and NSE Nifty today closed at new highs, boosting stock wealth by Rs 1 lakh crore, on across-the-board buying enthused by Narendra Modi-led goverment's investor-friendly economic agenda.

Overall, 10 out of 12 BSE sectoral indices closed up. Realty, capital goods, power, metal, consumer durable and auto segments led the pack. Investor wealth rose to Rs 90.26 lakh crore as 2,300 stocks rose of the over 3,100 traded.

The Sensex resumed strong on firm Asian cues and improved further to a new intra-day historic high of 25,644.77 before settling at 25,580.21 -also new closing peak- up by 183.75 points or 0.72 per cent. In straight three sessions, it has jumped by 774.38 points or 3.12 per cent.

Bajaj Auto, Coal India and L&T led the 20 Sensex gainers.

The broader 50-issue CNX Nifty of the NSE also flared up by 71.20 points, or 0.94 per cent, to log its fresh closing high of 7,654.60. It touched a new intra-day peak of 7,673.70.

Addressing a Joint Sitting of Parliament, President Pranab Mukherjee said curtailing food inflation will be Prime Minister Narendra Modi's top priority as his government pursues broad economic reforms focused on job creation, reviving growth, encouraging FDI and introducing a non- adversarial tax regime.

Remarks on infrastructure programmes, revamping of railways and enhancing electricity generation capacity. also boosted the market sentiment, sending indices to new peaks.

"Markets rose after President Mukherjee unveiled new government's economic reforms agenda, which included introducing GST, encouraging foreign investment and speeding up nods for major business projects" said Jayant Manglik, President-retail distribution, Religare Securities.

TCS, HDFC, ITC, Tata Steel, Maruti Suzuki, Hero MotoCorp, Tata Power and Gail India closed with marked gains in Sensex.

Impressive US jobs report and an upward revision of Japanese economic growth and last week's ECB stimulus to boost the eurozone economy, also aided the domestic sentiment.

FIIs bought shares worth Rs 1,283.04 crore last Friday, taking investments to nearly Rs 50,000 crore this year.

Globally, barring South Korea, other Asian markets closed higher between 0.03 per cent and 0.73 per cent on better than expected US payrolls, Chinese trade and Japanese economic growth data, said traders.

European stocks were trading mixed with an upward bias. Germany's DAX was up by 0.27 per cent and the UK's FTSE up by 0.13 per cent while the France's CAC was down 0.03 per cent.

In all, 20 out of 30 Sensex-based counters closed with gains while others settled with losses. Bajaj Auto was the top gainer from the Sensex pack with a rise of 5.48 per cent, followed by Coal India 5.22 per cent, L&T 3.51 per cent, Tata Power 2.53 per cent, Tata Steel 2.49 per cent, Gail India 2.30 per cent, Tata Motors 1.92 per cent, Maruti Suzuki 1.66 per cent, TCS 1.49 per cent and Hero MotoCorp 1.11 per cent.

However, ONGC declined 2.26 per cent, HUL down 1.24 per cent, SBI slid 1.18 per cent and Infosys slipped 0.66 percent.

"The next set of numbers that will impact the markets are the inflation data for May and IIP data for April," said Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities.

Among the S&P BSE sectoral indices, Realty shot up by 5.61 per cent, Capital Goods by 2.33 per cent, Power by 2.15 per cent, Consumer Durables by 1.82 per cent, Metal by 1.73 per cent and Auto by 1.51 per cent.

Total market breadth was strong. 2,307 stocks closed in the green while 778 finished in the red while 82 closed flat. Total market turnover dropped to Rs 4,884.72 crore from Rs 5,177.14 crore yesterday.

Indian shares surge to record high; blue-chips gain

(Reuters) Indian shares surged on Monday to record highs as blue chips such as Coal India and Larsen & Toubro continued to rally on hopes of wide-ranging reforms by the new Narendra Modi government.

Foreign institutional investors bought a net 12.83 billion rupees ($217.1 million) worth of shares on Friday, a sixth consecutive session of buying that brought their total so far this year to $8.5 billion, according to exchange and regulatory data.

Expectations of reforms and optimism about a recovery in the domestic economy have sent domestic shares up 21.4 percent so far this year, outperforming a 5 percent gain in the broader MSCI Asia-Pacific index excluding Japan.

"It's a strong bull run what we are seeing now. Union budget would be the next key event, but that would not be more than a financial statement," said Jagannadham Thunuguntla, chief strategist at SMC Global Securities.

"What the market is expecting is a key decision making process and early signs show that the (government's) direction is right. Unless something dramatic happens, the market is set for further upmove," said Thunuguntla.

The benchmark BSE index rose as much as 0.98 percent to hit a record high of 25,644.77, surpassing the highest level posted on Friday. The index closed 0.72 percent higher at 25,580.21.

The broader NSE index gained as much as 1.2 percent to hit an all-time high of 7,673.70. The index closed up 0.94 percent at 7,654.60.

Shares in Larsen & Toubro (L&T) closed 3.6 percent higher, gaining for the sixth straight session as investors hope that the new government's reform agenda would mainly focus on infrastructure sector, where L&T is a major player.

The stock has gained 63.7 percent so far this year.

Shares in Bajaj Auto Ltd jumped 5.5 percent, the highest single-day rise since Aug. 30, 2013, while Coal India Ltd gained 5.8 percent to 413.20 rupees.

Fertilizer stocks rallied after government official told Reuters that India plans to raise the price of urea, the fertiliser most used by its farmers, by at least 10 percent.

Shares in Rashtriya Chemicals and Fertilizers Ltd gained 5.5 percent, while Chambal Fertilisers and Chemicals Ltd rose 9.4 percent.

Among other gainers, real estate stocks rose, with realty index of the BSE closing 6.01 percent higher. Shares in DLF Ltd ended 3.5 percent higher, while Unitech Ltd gained 17.03 percent.

Oil and Natural Gas Corp was among the laggards, losing 2.7 percent as investors preferred to take profit after the stock jumped 12.1 percent to hit an all-time high.

Shares in Infosys continued to be under pressure. The stock closed 0.6 percent adding to its 1.3 percent fall on Friday on concerns after some key resignations.


* Euro nudges higher, shaking off post-ECB easing impact

* Oil rises above $109 on strong global growth

* World stocks inch towards all-time high