BSE Sensex and NSE Nifty hit record highs before announcement of CPI data.
The BSE Sensex today closed above the 28,000-mark for the first time and the Nifty touched 8,400-level with sustained buying by foreign funds in auto, banking, FMCG and consumer durable stocks amid hopes of easing inflation and encouraging IIP numbers.
Continuing its surge for the third day, the BSE Sensex hit fresh life-time high of 28,126.48. After paring some gains, the 30-share index settled at an all-time closing high of 28,008.90, up by 98.84 points, or 0.35 per cent, over the previous close. It surpassed the earlier record closing of 27,915.88 touched on November 5.
The gauge had gained 41.43 points in the previous two sessions.
It took 45 trading sessions from September 2 to November 12 to reach the psychological 28,000-level from 27,000.
The NSE Nifty crossed the key 8,400-mark for the first time to hit an all-time high of 8,415.05, breaching its earlier record of 8,383.05 on November 10.
However, some profit-booking at record levels trimmed part of gains but the Nifty ended at a new record high of 8,383.30, up 20.65 points. It surpassed its previous closing peak of 8,362.65 in yesterday’s trade.
A host of positive developments on domestic as well as global fronts buoyed the market and lifted key indices to new highs.
Brokers said sentiment remained positive and foreign funds continued their buying spree on the domestic bourses and retail investors enlarged positions amid strong quarterly earnings posted by blue-chip companies and hopes of further push to economic reforms by the Centre after the recent Cabinet reshuffle.
Further, expectations of encouraging economic data such as inflation for October and IIP numbers for September, to be released after market hours today, buoyed trading sentiments, they said.
Meanwhile, foreign portfolio investors (FPIs) remained the main driving force behind the current bull-run. FPIs bought shares worth a net Rs 458.04 crore yesterday, according to provisional data from the stock exchanges.
Sensex components which supported the key indices to hit fresh life-time high were Axis Bank (3.02 pc), Bajaj Auto (2.10 pc), HDFC Ltd (1.12 pc), SBI (0.17 pc), ICICI Bank (1.33 pc), HDFC Bank (0.44 pc), ITC Ltd (1.55 pc), Bharti Airtel (0.64 pc), BHEL (0.88 pc), Coal India (0.10 pc), Dr Reddy (0.58 pc), Hero MotoCorp (1.50 pc), Tata Motors (1.71 pc) and TCS (0.55 pc).
Sectorwise, BSE Auto index gained the most by rising 1.18 per cent, followed by Bank index 1.12 per cent, FMCG 0.96 per cent and Consumer Durables index 0.55 per cent.
Buying activity in small and midcap also gathered momentum, with the BSE midcap index rising by 0.47 per cent and smallcap index by 0.20 per cent.
Indian shares hit record highs before CPI data
(Reuters) Indian shares touched record highs for the second time this week as rate-sensitive stocks such as Axis Bank rose on hopes easing inflation would prompt the central bank to cut interest rates earlier than expected.
Consumer inflation in October, due at 5:30 p.m. (1200 GMT), is expected to have eased to a record low of 5.80 percent, dragged by sharp drops in food and oil prices, according to a Reuters poll.
If the forecast is met, it would also make the central bank’s inflation targets – 8 percent by January 2015 and 6 percent a year later – appear more attainable.
“The market is expecting inflation to come down very fast. So if the rates are not cut then certainly some momentum will be lost,” said Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services Ltd.
The benchmark BSE index closed 0.35 percent up, after earlier rising as much as 0.78 percent to an all-time high of 28,126.48.
The broader NSE index rose 0.25 percent after earlier gaining as much as 0.63 percent to a record high of 8,415.05.
Rate-sensitive stocks led, with Axis Bank rising 3.1 percent and ICICI Bank ending 1.3 percent higher.
Kotak Mahindra Bank rose 1.7 percent and HDFC Bank advanced 0.4 percent. Among non-banking lenders, Mahindra and Mahindra Financial Services Ltd surged 7.5 percent, while LIC Housing Finance ended 4.1 percent higher.
Some auto stocks also rose. Two-wheeler manufacturers Bajaj Auto gained 2 percent, Hero MotoCorp ended 1.5 percent higher, while car maker Maruti Suzuki India gained 0.9 percent.
Tata Motors also advanced 2 percent on optimism ahead of its September-quarter earnings on Friday.
Tyre shares rose as investors expect falling crude oil and rubber price to boost companies’ margins.
Bayer CropScience ended up 10.2 percent after earlier marking its all-time high of 2,749 rupees after its September-quarter profit growth bucked the trend of weak earnings at rivals.
Among decliners, consumer goods stocks fell on worries that higher-than-expected good and services tax (GST) may restrict profit growth. Media reports on Wednesday said a government panel suggested GST rate of 27 percent.