NSE Nifty hits new record peak ahead of Budget; Indian railways stocks jump

Written by PTI | Mumbai | Updated: Jul 8 2014, 03:32am hrs
NSE NiftyNifty scaled a new all-time high of 7,787.15, up 35.55 points
Extending their pre-Budget rally, shares jumped on the National Stock Exchange (NSE), whose benchmark index Nifty hit a fresh lifetime peak today as investors lapped up stocks amid optimism over reforms and incentives for various sectors to revive economic growth.

The 50-share Nifty scaled a new all-time high of 7,787.15, up 35.55 points, or 0.46 per cent, over its last close after hitting 7,792 in intra-day trade on a day when Railway-linked stocks hogged the limelight.

Technology stocks, riding on upbeat forecast ahead of earnings season that will be kicked off with Infosys numbers on July 11, spearheaded the surge even as healthcare, FMCG, auto and infra shares joined the rally.

However, heavy unwinding was witnessed in the banking sector with both public and private lenders slipping and restricting further market gains.

Investors are eagerly waiting for the Narendra Modi Government's maiden Budget, to be presented on July 10, which they hope will unveil a roadmap to revive growth in the backdrop of stubbornly high inflation and a weak monsoon.

Though the market succumbed to profit-taking in mid- afternoon after a firm start, it managed to end at a new peak as traders took long positions ahead of key events this week.

Meanwhile, other Asian and emerging markets retreated after last week's rally on concerns over the developments in Ukraine amid caution after IMF chief hinted that the pace of global growth may be weaker than expected in the second half of the year due to sluggish investments.

Shares of rail-related stocks were in focus on eve of Railway Budget. Stocks like Kernex Mico, Kalindee Rail, Titagarh Wagon and Texmaco rose between 5 and 13 per cent.

IDFC was among the most actively traded shares and shot up 6.34 per cent after Morgan Stanley upgraded the stock to overweight. Other gainers included Sun Pharma, Tata Power, TCS, Infosys, Wipro, Tata Motors, DLF, Dr Reddy's and HCL.

IndusInd Bank, HDFC Bank, UltraTech, BPCL, ONGC, PNB, United Spirits, Axis Bank, Bank of Baroda and Grasim were the key Nifty laggards.

Turnover in the cash segment spiked to Rs 18,875.91 crore from Rs 16,394.21 crore last Friday. A total of 9,853.68 lakh shares changed hands in 72,70,352 trades, while the market capitalisation stood at Rs 90,62,318 crore.