Sensex crosses 38,000 on growth optimism

The benchmark Sensex broke past the 38,000-barrier for the first time, while the NSE Nifty extended its record run for the fifth day on Thursday, as optimism surrounding the India growth story continued to override global trade concerns.

Banking stocks sparkled for yet another session, with ICICI Bank topping the Sensex gainers list.

Uninterrupted foreign and domestic fund inflows amid robust corporate earnings shows that investor sentiment remains skewed towards equities, brokers said. Foreign markets were mixed after China announced retaliatory tariffs on US imports.

However, Dalal Street shrugged off the latest escalation in the trade showdown between Washington and Beijing, and continued its upward march.

The 30-share Sensex breached the historic 38,000-mark in opening trade and remained in the green throughout the session.

It finally finished 136.81 points or 0.36 per cent higher at 38,024.37, breaking its previous record close of 37,887.56 reached on Wednesday. The index took 11 sessions to cross the 38,000-mark from the 37,000-level reached on July 26.

The broader Nifty rose 20.7 points or 0.18 per cent to close at 11,470.70 — surpassing its previous high of 11,450 reached on Wednesday.

On a net basis, foreign portfolio investors (FPIs) bought shares worth ~5.68 billion, while domestic institutional investors (DIIs) bought equities to the tune of ~302.5 million on Thursday, provisional data showed.

“Green shoots in earnings and growth prospects of domestic economy overrode global headwinds caused by trade tensions. On the other hand, oil price hovering near the recent low and increasing exposure of FIIs to domestic equity bodes well for the market direction. Investors are also focused on tomorrow's IIP data with a positive consensus of 5.6 per cent growth,” said Vinod Nair, Head of Research, Geojit Financial Services.

The index took 11 sessions to cross 38,000, from the 37,000-level reached on July 26