Sensex, Nifty hit new peaks, log best one-day gains in 5 months

MUMBAI: After a day's breather, the benchmark indices Sensex and Nifty resumed record-setting rally to scale new peaks and logged their best single-day gains in nearly five months, tracking positive global cues as investors took heart from the US Federal Reserve's "gradual approach" comments on monetary policy tightening.

The BSE Sensex surged over 442 points to close at its lifetime high of 38,694.11 and the broader NSE Nifty ended at a fresh record of 11,691.95, rising 134.85 points.

Both indices recorded their biggest single-day gains in nearly five months. On April 5 this year, the 30-share Sensex had rallied 577.73 points and the Nifty 50 had jumped 196.75 points.

Last week, US Federal Reserve Chairman Jerome Powell had said that a "gradual approach" to interest rate hikes would be in the best interest of the US economy and jobs generation, lifting Wall Street sentiment at the week's close.

Asian shares too ended higher and European markets were firm in their early deals, tracking Friday's gain in US stocks. Also, global markets reacted positively to the People's Bank of China announcement that it was tweaking its methodology for the fixing of the yuan's daily midpoint as part of efforts to stabilise the currency market. Sentiment also got a boost on unabated buying by domestic

institutional investors (DIIS) and fresh foreign fund inflows, giving push to trading activities.

Buying momentum was so strong that all sectoral indices, except realty, ended in the positive terrain.

In the Asian region, Japan's Nikkei ended 0.88 per cent higher, while Hong Kong's Hang Seng gained 2.08 per cent.

Shanghai Composite Index too up 1.89 per cent.

In the Eurozone, Frankfurt's DAX gained 0.41 per cent and Paris CAC advanced 0.40 per cent in early deals. London Stock Exchange was shut for a public holiday on Monday.

In US, the S&P 500 and Nasdaq Composite reached all-time highs on Friday.