Growth Factor Propels Sensex, Nifty to Historic Highs
Spurred by robust economic growth, the BSE Sensex today surged to historic peak of 26,900.30 points and Nifty crossed 8,000 level for the first time on aggressive buying particularly in auto, metal and banking counters.
The 30-share Sensex, however, settled at 26,867.55 -- new closing high -- with gains of 229.44 points or 0.86 per cent over the previous close. In the last five trading sessions, the Sensex has been scaling new closing peaks.
The 50-share Nifty crossed the 8,000 level for the first time and closed at 8,027.70, a net gain of 73.35 points or 0.92 per cent. The Nifty touched all time high of 8,035.00 in intra day trade.
It took 78 trading sessions from May 12 to reach the 8,000-mark from 7,000 points.
Sentiments turned bullish as foreign capital inflows picked up after economic growth improved to two-and-a-half year high of 5.7 per cent in the April-June quarter, brokers said. Growth numbers were released on last Friday.
The market also got a boost after Prime Minister Narendra Modi today promised to remove roadblocks to foreign investment and said that economy was out of difficult situation and more reforms were in the offing.
"Positive economic data and continued optimism in the equity segment gave renewed boost to the current rally. Nifty today saw a breakout above 7970 level and also closed above 8000 level, which holds psychological importance," Bonanza Portfolio Senior Research Analyst Nidhi Saraswat said.
HeroMoto Corp was the biggest Sensex gainer as it jumped 5.79 per cent. Maruti Suzuki climbed 4.71 per cent.
Larsen and Toubro, Hindalco, ONGC, GAIL, Reliance Industries, Cipla, Coal India, Sesa Sterlite, Tata Power, Tata Steel, Infosys and NTPC posted gains in the range of 1 per cent to 3.62 per cent.
"The stellar run for Indian equity markets continued on the back of better than expected GDP data and an increased conviction amongst the investing community on equities as an asset class for the next three to five years," Devang Mehta, SVP & Head Equity Advisory & Retail Sales, Anand Rathi Financial Services Ltd, said.
Strong sales number in August posted by some auto makers, including Maruti Suzuki, was another positive factor for the markets, brokers said, adding that operators preferred to go long on the first day of September series.
Among sectoral indices, BSE Metal sector index rose (2.79 per cent), followed by Capital Goods (2.75 per cent), Realty (2.72 per cent) and Power (2.60 per cent).
The BSE Bankex rose by 1.79 per cent, Consumer Durables 1.63 per cent, Oil & Gas 1.61 by per cent and Auto by 1.32 per cent.
A near term hope of zero losses on sale of diesel has given a much needed boost to the oil marketing & upstream companies, Mehta said.
"Both FIIs and DIIs were the net buyers for the month of August. Local equities has over looked the ongoing crises in Ukraine and Gaza and focused on the recent positive sentiments," Jignesh Chaudhary, Head of Research, Veracity Broking Services said.
Among 30 Sensex shares, 22 scrips ended higher, while eight others finished lower. Sunpharma fell by 1.46 per cent, ITC by 1.37 per cent and HDFC by 1.19 per cent.
Meanwhile, the HSBC India Manufacturing Purchasing Managers' Index (PMI), a measure of factory production, eased to 52.4 in August from 53 in July, though remaining "solid" as reading above 50 indicates growth while a lower reading means contraction.
The total market breadth turned positive as 1,923 stocks closed higher, 1,010 finished lower while 137 ruled steady.
"Persistent efforts by the Modi government to revive manufacturing, create jobs and hack through the thicket of regulatory labyrinth to rev-up the engine of growth is responsible for the buoyancy in Indian markets," Ajay Bodke, Head - Investment Strategy & Advisory at Prabhudas Lilladher said.
- No Explanation, No Opportunity to Defend Myself, Says Mistry in an Explosive Mail to Board Members
- Modi-Key Talks: NZ Assures 'Constructive' Approach on NSG Bid
- Akhilesh Briefs Governor Ram Naik on Political Situation in UP
- Former Karnataka CM B.S. Yeddyurappa Acquitted of Corruption Charges
- Manipuri Student's Body Found in JNU Hostel Room
- Paul Beatty Becomes the First American to Win Booker Prize
- Neeraj Pandey's Ouch Takes on the Complexities of a Relationship
- Watch: Svetlana Kuznetsova Snips Her Hair And Bosses The Match
- Daily Curator: After Board Says Tata to Cyrus, Bombay HC May Have a Case to Hear
- Should You Be Worried About H5N8 Bird Flu? A Quick Guide To The Alphabet Soup
- Watch: The Trailer of Hugh Jackman's Last Wolverine Film, Logan
- Daily Curator: It's All About The Family
- Police Registers Assault Case Against AAP MLA Amantullah Khan
- PM Asks Officials to Analyze World Bank Report Which Ranked India 130th
- Cabinet May Consider Advancing Budget to Feb 1
- UNESCO Approves Resolution on Jerusalem That Israel Says Denies Judaism's Ties to Temple Mount
- 26/11: India Not Responding to Pak Request to Send Witnesses, Says Prosecution
- Pak Lawmakers Slam Cricketers for Doing Push-Ups After Match Win Instead of Praying
- MOST VIEWED
- MOST COMMENTED