Markets hit lifetime highs for third straight day aided by sustained FII buying
Benchmark indices hit fresh lifetime highs on Thursday, for the third straight session, on expectations of a quantitative easing programme from the European Central Bank (ECB). The BSE barometer Sensex closed above the 29,000-milestone, while the 50-unit CNX Nifty also scaled a fresh peak, ending the day at 8,761.40 points.
Foreign institutional investors (FIIs) bought shares worth $98.79 million, while domestic institutional investors sold shares worth $96 million. In FIIs have bought $881 million in YTD.
The 30-share BSE Sensex ended higher by 117.16 points or 0.41% to 29,006.02 points, while the broader 50-share Nifty gained 31.90 points or 0.37%. At 7.15 pm IST, ECB announced bond-purchasing programme of 60 billion euros per month till end of September 2016.
Market gains were led by Sun Pharma (3.6%), Axis Bank (3.3%) and Tata Motors (2.7%).
Among its peers, most of the Asian markets edged higher on Thursday. All major European indices too were all trading in the green at about 7.00 pm IST.
Back home, 20 of the 30 Sensex stocks ended in the green on Friday. In the broader market, breadth was weak with 1589 stocks traded on the BSE ending lower compared with 1333 advances. Most of the 12 BSE sectoral indices ended in the green.
The BSE Healthcare (1.7%), BSE Capital Goods (1.1%) and BSE Auto (0.7%) were among the major gainers.
The NSE cash turnover stood at R19,254.47 crore, while the turnover in the F&O segment stood at R2.51 lakh crore.
Nomura expects Sensex to touch 33,500 points by December, 2015. “At the end of 2015, we expect market confidence in the India growth story to be much stronger than it is today. Additionally, we expect that the market’s belief in the sustainability of lower inflation will be on a more solid footing. Thus, the macro background in India remains conducive for an expansion in overall multiples as we expect both growth and inflation expectations to improve,” the brokerage said in a report.