BSE Sensex, NSE Nifty at fresh record highs; oil stocks lead rally

Written by Reuters | Mumbai | Updated: Sep 8 2014, 23:26pm hrs
Sensex, Sensex today, BSE Sensex, HDFC Bank sharesSensex ends 293.15 pts up at new closing peak of 27,319.85; Nifty gains 87.05 pts to lifetime high of 8,173.90. (AP)
Stock markets today hit fresh highs with BSE Sensex rising 293.15 points and the Nifty surging 87.05 points to end at new peaks on the back of gains in refinery, IT, metal and capital goods shares amid robust fund inflows.

In step with share market, the rupee also firmed up against dollar to hit 60.19 levels intra-day. Full Coverage: Indian rupee vs US dollar, others

After opening in positive terrain, the 30-share Sensex continued its upward march and soared to hit intra-day record high of 27,354.99, surpassing its earlier peak of 27,225.85 hit on September 3. The benchmark closed with gain of 293.15 points, or 1.08 per cent, at new closing peak of 27,319.85, bettering earlier record of 27,139.94 (September 3).

The BSE index snapped the losing trend of previous two trading sessions where it had shed over 113 points.

The 50-share NSE rebounded 87.05 points, or 1.08 per cent, to close the day at new record high of 8,173.90, breaching its previous record of 8114.60 hit on September 3.

Intra-day, it also hit a new life-time high of 8,180.20, bettering previous record fo 8,141.90 on September 3.

Overseas funds continued to remain major players on the bourses after Foreign Portfolio Investors bought shares worth Rs 310.51 crore last Friday, as per provisional data.

"Growth optimism continued to fuel markets. Easing geo- political tension in Ukraine led to Brent crude going below $100," said Dipen Shah, Head-PCG Research, Kotak Securities.

Equity brokers said after two days of consolidation, buying activity gathered momentum ahead of key macro economic data releases, including IIP and inflation, later this week.

Gains in Sensex and Nifty were supported by gains in Oil & Natural Gas Corp (ONGC) after Bank of America Merrill Lynch upgraded the stock amid softening global crude oil prices. ONGC was up 2.78 per cent, GAIL gained 0.22 per cent and Cairn India rose 2.24 per cent.

Shares of OMCs BPCL, HPCL and IOC also advanced.

In line with overall trends, RIL jumped over 1 per cent.

Among Sensex stocks, Hindalco stole the showing, rising 3.49 per cent. Overall 26 Sensex stocks ended higher and 4 finished in negative zone. Gainers included Axis Bank, Bajaj Auto, Cipla, HDFC Bank, Hero Moto, ICICI Bank and Infosys.

Sectorwise, the BSE Oil & Gas gained the most by surging 1.79 per cent, followed by FMCG 1.40 per cent, Banking 1.38 per cent, Capital Goods 1.29 per cent, Metal 1.25 per cent and IT 1.22 per cent.

Globally, Asia was mixed in holiday-thinned trade while European stocks dropped on profit-taking.

Indian shares resume record-setting streak on foreign flows, oil

(Reuters) Indian shares rose more than 1 percent on Monday, resuming their record-setting streak after two days of consolidations, as strong foreign buying and weak oil prices stoked buying in blue-chips such as HDFC Bank .

The broader NSE index gained as much as 1.15 percent to a new high of 8,180.20, while the benchmark BSE index rose 1.21 percent to an all-time high of 27,354.99, surpassing their previous records hit on Wednesday.

Weak global economic growth combined with ample supply pushed oil prices below $100 a barrel for the first time in 14 months on Monday. Investors say this will further help the Indian government and the central bank to rein in fiscal deficit and inflation.

Meanwhile, local shares have benefited from strong foreign buying which has led indexes to a string of record highs this year. The 50-share NSE index is the best performing equity index in Asia, up 32.6 percent in U.S. dollar terms for 2014 so far.

Foreign buying is expected to continue after data on Friday showed U.S. employers added the fewest jobs in eight months in August, reviving bets that the Federal Reserve might leave interest rates near zero for longer than anticipated.

"Softening of non-food commodity prices would be the next big trigger for Indian shares. Over the next three years earnings will grow by 16-18 percent and market returns would mirror that," said Harsha Upadhyaya, chief investment officer - equity at Kotak Mutual Fund.

The BSE index rose 1.08 percent, or 293.15 points, to end at 27,319.85.

The NSE index rose 1.08 percent, or 87.05 points, to end at 8,173.90, closing above the psychologically important 8,100 level.

Goldman Sachs raised its NSE index target to 9,000 points for September 2015 from 8,600 points for June 2015, saying earnings sentiment remained positive for the overall market.

Blue-chips led gains after two consecutive sessions of losses. HDFC Bank rose 1.9 percent, while Reliance Industries ended up 1.2 percent after falling 0.54 percent over the last two sessions.

Larsen & Toubro rose 1.04 percent, while ICICI Bank ended 1.3 percent higher.

Oil and Natural Gas Corp gained 2.6 percent after Bank of America Merrill Lynch upgraded the stock to "buy" from "neutral", saying it expected more gains from oil reforms than earlier.

Oil marketing companies surged after Brent crude fell below $100 a barrel for the first time in 14 months. Hindustan Petroleum Corp advanced 4.5 percent, Bharat Petroleum Corp gained 1.7 percent and Indian Oil Corp rose 3.4 percent.

Shares of logistics firms gained ahead of the listing of cold storage company Snowman Logistics in the next few weeks.

Gati jumped 10 percent, Container Corp of India gained 2.8 percent and Balmer Lawrie and Co advanced 2.9 percent.

Cement stocks gained on expectation demand will pick up when the monsoon season ends after September, dealers said. ACC and UltraTech Cements ended up 1.8 percent each.

However, among stocks that fell, Motherson Sumi lost 0.5 percent, adding to Friday's 2.4 percent slump on profit-taking after hitting a record high of 402 rupees.