Domestic markets were on a roll on Tuesday with the NSE Nifty breaching the 9,300 mark for the first time ever, while BSE Sensex jumped over 300 points in intraday trade. The NSE Nifty had last touched its previous record of 9,273.90 on April 5. The BSE Sensex closed 287.40 points up at 29,943.24, while NSE Nifty closed 88.65 points up at 9,306.60 today.
We take a look at 5 factors that drove the rally today:
1. Reliance Industries: Shares of Reliance Industries Ltd zoomed after the company posted a record fourth quarter net profit of Rs 8,046 crore, buoyed by higher earnings from its petrochemicals business and an 8-year high refining margin. The rise in stock price helped RIL maintained the status of most valued company by market capitalisation. Its valuation was at Rs 4,68,338.25 crore intraday — the maximum for any listed company in the country at present.
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2. Global Factors: Positive Asian cues and a higher opening in European markets also added to the momentum. Globally, Japan’s Nikkei surged 1.90 percent, Hong Kong’s Hang Seng rose 1.31 percent, while Shanghai Composite Index gained 0.16 percent. In Europe, London’s FTSE rose 0.22 per cent, Paris CAC 40 gained 0.18 percent and Frankfurt’s DAX inched up 0.03 percent in early deals. The sentiment was also bolstered as Asian markets hit multi-year highs, reflecting the return of risk appetite after a centrist victory in the first round of the French presidential election.
3. Indian Rupee: The rupee appreciated by 17 paise to hit a 3-week high of 64.27 against the dollar intraday on persistent selling of the greenback by banks and exporters on the back of lower dollar overseas.
4. FII’s: Stock markets also remained upbeat after foreign funds net sold shares worth Rs 279.55 crore while domestic funds bought shares worth net Rs 984.17 crore on Monday as per the provisional figures issued by stock exchanges.
5. F&O Expiry: Markets took to short-coverings ahead of the expiry of April series F&O contract, which helped boost market sentiment.