Sensex ends above 37,000, Nifty surges past 11,200 mark

MUMBAI: Indian markets extended their gains for the sixth consecutive session, hitting fresh record highs on Friday. Both the benchmark indices gained nearly 1% at closing while the Sensex ended above the 37,000-mark for the first time.

The 30-share index closed at 37,336.85, up 352.21 points or 0.95%, while the National Stock Exchange’s 50-share Nifty ended at 11,278.35, up 111.05 points, or 0.99%.

The Sensex has jumped more than 5.4% in July, poised for its best month since January.

Among its Asian peers, the benchmark Sensex is still one of the best performers, besides the Nikkei. In dollar terms, the Sensex is up 1.91%, while the Nikkei is up 1.05% in this year so far.

Analysts said investors are enthused about expectations of earnings growth recovery and consumption demand pick-up, especially in rural markets supported by the monsoon and government reforms such as minimum support prices (MSP) and farm loan waivers in some states.

Arun Thukral, managing director and chief executive officer, Axis Securities, said that Indian equity markets are trading at an all-time high, driven by strong buying by domestic investors, good June quarter results, and positive global cues.

“Though the index is driven by a handful of stocks, it infuses the confidence in the economic potential of the country and its ability to distinguish itself from the global markets. It reinforces the faith of domestic investors in equity markets amid foreign outflows and the revival of the earnings cycle, which started in Q2FY18 onwards,” he added.

The steady decline in crude prices have also supported Indian markets. Brent crude prices slipped 6.2% in the month of July so far, after a steep climb of 11.4 % this year.