Sensex scales new peak

The flagship BSE Sensex on Monday rallied to a new lifetime high of 36,749.69 on the back of strong gains in banking and FMCG stocks after the GST Council reduced rates on a number of products.

The 30-share index finally settled higher by 222.23 points or 0.61 per cent at 36,718.60, its record closing level, even as Asian markets were mixed amid growing fears of trade and currency wars. FMCG major ITC, Hindustan Unilever and Asian Paints rallied. Strong gains in Vedanta, Adani Ports, Bharti Airtel and Maruti Suzuki also helped the index touch record levels.

Also, the broad-based NSE Nifty closed higher 74.55 points, or 0.68 per cent at 11,084.75, its highest closing since January 29 when it ended at 11,130.40. The Sensex it moved between 11,093.40 and 11,010.95. "Reducing GST rates and positive cues from ongoing result season supported the market," Vinod Nair, Head of Research, Geojit Financial Services, said.

"Consumption-oriented sector inched higher in expectation of improvement in margin and volume growth on account of lower GST rates. Subsequently, inflation is likely to moderate which will refrain RBI from further tightening," he said further.

Banking stocks ICICI Bank, SBI, Indusind Bank, Axis Bank and Kotak Mahindra rose after lenders entered into a pact with financial institutions to fast-track resolution of stressed assets of Rs 50 crore or more which are under consortium lending.