Rising for the eighth straight day, markets continued their record-setting spree with benchmark Sensex today jumping 292.20 points to end at new closing peak of 29,571.04 and Nifty breaching 8,900-mark for the first time as investors cheered the strengthening of Indo-US trade ties.
Sustained FII inflows kept the momentum going for Indian shares despite mixed trend seen elsewhere in Asia in the wake of anti-austerity Syriza party’s victory in Greek elections.
Hopes of pick up in foreign investments in India after the ECB launched a landmark bond-buying stimulus programme to revive euro zone economy provided good support, traders said.
The BSE Sensex resumed higher at 29,451.65 and rose further to lifetime high of 29,618.59 before ending at all-time closing high of 29,571.04, showing a gain of 292.20 points or one per cent.
The BSE Sensex has gained by 2,224.22 points of 8.13 per cent in the eight successive trading sessions.
Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities:
Sensex ended at record highs led by mainly banks. Strong global cues also aided the investor sentiment. Macroeconomic data is also turning increasingly positive on fiscal as well as external side, which is prompting foreign investors to take a positive view on India. Going ahead, important datapoints include GDP growth numbers for US and UK.
The CNX 50-share Nifty also gained 74.90 points, or 0.85 per cent, to hit all-time closing high of 8,910.50 after hitting historic high of 8,925.05.
“Domestic markets upheld the prevailing upside momentum on Monday and scaled to newer highs….Buoyancy was triggered by the US president on his visit to India as he pledged investment and loans worth USD 4 billion in order to promote trade and business with India,” said Religare Securities, President-retail distribution, Jayant Manglik.
US President Barack Obama today left for Saudi Arabia, wrapping up his 3-day visit during which both the countries broke a seven-year logjam to operationalise a landmark civil nuclear deal, besides boosting defence and trade ties.
Capital goods sector stocks hogged the limelight after Obama and Prime Minister Narendra Modi unveiled a deal aimed at unlocking billions of dollars in nuclear trade and deepening defence ties.
In key earnings, stocks of Maruti Suzuki India rose by 2.12 per cent after the country’s largest car maker reported 17.8 per cent growth in net profits for the third quarter.
Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 2,019.98 crore last Friday as per provisional data.
Key benchmark indices in Singapore, Taiwan, Japan and South Korea rose 0.40 per cent to 1.72 per cent while those in China and Hong Kong fell by 0.41 per cent to 0.89 per cent.
European markets were trading lower in their early trades. Indices in France, Germany and the UK moved down by 0.12 per cent to 0.47 per cent.
Veracity Broking Services, Head of Research, Jignesh Chaudhary, said: “Indian markets reacted positively after a deal that could allow US companies to build nuclear reactors in the country.”
In Sensex, 19 scrips out of the 30 index constituents ended higher while 11 finished lower.
Major gainers were Axis Bank (4.83 per cent), Cipla (4.62 per cent), ICICI Bank (3.58 per cent), ITC (3.01 per cent), HDFC Bank (2.98 per cent), Tata Motors (2.93 per cent), Bharti Airtel (2.16 per cent), Maruti (2.12 per cent), Larsen & Toubro (2.07 per cent), HDFC (1.95 per cent) and BHEL (1.11 per cent).
However, Dr Reddy’s Lab fell by 4.01 per cent, followed by Infosys 3.53 per cent, M&M 2.81 per cent, Coal India 2.77 per cent, HUL 2.18 per cent, Hindalco 1.59 per cent, Tata Steel 1.14 per cent, Sun Pharma 1.07 per cent and Bajaj Auto 1.01 per cent.
Among the S&P BSE sectoral indices, Bankex 2.30 per cent, Capital Goods 1.84 per cent, Auto 1.24 per cent, FMCG 1.14 per cent and Realty 1.03 per cent while IT fell by 1.66 per cent and Teck 1.07 per cent.
As a result, total market breadth remained negative as 1,510 stocks ended in the red, 1,419 closed in the green and 113 ruled steady. Total turnover fell to Rs 3,890.86 crore from Rs 4,032.25 crore last Friday.