Sensex & Nifty scale new peaks on fresh buying
Stocks rose to fresh life-time closing high levels, riding on optimism over earnings, growth and upcoming Budget, with the benchmark BSE Sensex jumping 199 points to end at record 34,352.79 and the Nifty scaling the 10,600-mark for the first time.
Gains in key IT, capital goods, healthcare and metal stocks after consistent buying by domestic and foreign investors helped both the key indices scale new peaks.
The 30-share Sensex opened higher and continued its upward march to touch a new intra-day record high of 34,385.67, surpassing its previous high of 34,188.85 hit on January 5. But it lost some ground due to profit-booking and settled up by 198.94 points, or 0.58 per cent, at 34,352.79 — its all-time closing high. The Sensex bettered its previous record of 34,153.85, touched on January 5. Similarly, the broader 50-issue NSE Nifty hit a new intra-day high of 10,631.20, smashing its previous record of 10,566.10, hit on January 5. The index shed some grounds to close at 10,623.60, still a new closing high, up by 64.75 points or 0.61 per cent. It broke the previous record of 10,558.85, reached on January 5.
“Supportive global market and optimism ahead of earnings season took the market to a new high. A cut in FY18 GDP growth estimate by CSO did not impact the movement, since it was overtly conservative. Revival in earnings, incremental QoQ growth in GDP and Budget expectations are sustaining the momentum,” said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
The CSO on Friday said India’s growth is likely to slow
Nifty 50 Intra-day
down to 6.5 per cent in 2017-18 against 7.1 per cent in 2016-17 and eight per cent in the preceding year mainly due to the impact of GST on manufacturing and subdued farm output.
“Sentiments were boosted by the positivity from global peers and expectations on the upcoming union budget, anticipating reforms for fiscal consolidation and enhancements in rural spending. Recovery in dollar rode the pharma and IT stocks higher,” Anand James, Chief Market Strategist, Geojit Financial Services said. Foreign portfolio investors have been supporting the ongoing rally in the new year by pumping in sizeable money into market.