Sensex, Nifty end at record highs
MUMBAI: The benchmark Sensex logged a record close on Monday, tracking strong gains in Asian markets at the start of the week, following all-time highs on Wall Street on Friday.
BSE’S 30-share Sensex closed 0.73%, or 251.12 points, to a record high of 34,843.51 points, while NSE’S 50-share Nifty climbed 0.56%, or 60.30 points, to a record close of 10,741.55 points. However, market closed off highs and the breadth turned neutral from positive in early trade.
Earlier in the day, Sensex rose as much as 1.07% or 371.30 points to a record high of 34,963.69 points, while Nifty climbed as much as 0.95% or 101.40 points to a record of 10,782.65 points.
“Indicators have shown is that some kind of correction should be in the offing. This has been the case. However inflows from domestic investors are driving the market,” said Dipen Sheth, head of institutional research at HDFC Securities.
Domestic institutional investors (DIIS) have been net buyers of Indian shares to the tune of ₹1,446.67 crore so far this year, after record net inflow of ₹91.354.20 crore in 2017.
“That said, while upcoming earnings recovery is discounted, it is not bubble territory as well,” said Sheth, adding that stock picking is key in the current market, where valuations look full for frontline indices.
“Also, while reforms are leading to teething problems right now, all these will bear fruit over the medium to long term. We should not mistake the weather from the climate,” added Sheth.
Gainers beat losers in the ratio of 1.1:1 on the BSE at close, while they were more than double the number of losers in early trade.
BSE Finance and BSE Bankex indices gained the most, at 1.65% and 1.25%, respectively.
Housing Development Finance Corp Ltd contributed the most to the rise in Sensex, as it rose as much as 7.08% to a record high of ₹1,886, after it said it will raise around ₹11,104 crore from institutional investors such as KKR, GIC and Premji Invest, among others.