The party in D-Street continued on Friday, as Sensex and Nifty hit fresh life highs buoyed by a surge in financial stocks amid improved investor sentiment after the government decided to cut tax rates on certain products and services. Sensex closed at 35,511.58, while the 50-share Nifty ended at 10,900 on Friday.
The party in D-Street continued on Friday, as Sensex and Nifty hit fresh life highs buoyed by a surge in financial stocks amid improved investor sentiment after the government decided to cut tax rates on certain products and services. The 30-share BSE Sensex rallied 251.29 points or 0.71 percent to 35,511.58, and the 50-share NSE Nifty rose 77.7 points or 0.72 percent to 10,900.
In the 30-share Sensex, Adani Ports, SBI, ICICI Bank, Yes Bank, Axis Bank shares rallied by more than 2% each. Among Nifty stocks Adani Ports, bajaj Finance, ICICI Bank and IOC were among the top gainers rising by more than 4% each. BSE Bank index jumped 456 points, following stable earnings from Kotak Mahindra Bank and HDFC Bank. Notably, the Sensex gained 489.24 points in the previous two sessions and yesterday closed at new peak of 35,260.29 after scaling an intra-day all-time high of 35,507.36. Yesterday, the Nifty had closed at record high of 10,817 and touched an intra-day high of 10,887.50.
Meanwhile, amid the ongoing earnings seoason, private sector lender IDFC Bank said its profit for the quarter ended December 2017 declined 23.6 percent to Rs 146.1 crore, compared to Rs 191.3 crore in year-ago. Profitability was hit by lower net interest income, other income and operating income; but was largely supported lower provisions.
Commenting on the outlook for the market going forward, Mr. Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking said in a note, “t seems that the bulls are not at all willing to give up and the important event (Union Budget) being around the corner, they are becoming quite successful in defending key support levels. In the previous article, we talked about the confirmation of ‘Exhaustion Gap’ and hence, 10687 to act as a crucial support. In general scenario, a move below this support should have resulted into further weakness; but the strong sentiments once again managed to pull the index higher.”
Taking stock of the earnings reported in the IT sector, Mahesh Patil of Aditya Birla Sun Life Mutual Fund says that the sector looks good, but one still needs to wait to see the growth trajectory. Further, there are hopes for the sector based on better US business conditions, corporate tax cuts there along with increased spends by companies in US based on these cuts.