Sensex rises 206 pts, Tata stocks tumble
MUMBAI: Equity benchmarks closed at record highs for the second straight day on Wednesday, propelled by gains in index heavyweights HDFC Bank, RIL and ITC amid supporting global cues.
After rallying to its record intra-day peak of 41,614.77, the 30-share BSE Sensex settled 206.40 points, or 0.50%, up at its all-time closing high of 41,558.57.
Similarly, the broader NSE Nifty advanced 56.65 points, or 0.47%, to its record closing high of 12,221.65.
Mahindra and Mahindra was the top gainer in the Sensex pack, surging 3.37%, followed by Sun Pharma 2.53%, Asian Paints 1.88%, ITC 1.70%, HDFC Bank 1.58% and HCL Tech 1.46%.
On the other hand, Tata Motors was the biggest loser, dropping 3.05% after the National Company Law Appellate Tribunal (NCLAT) on Wednesday ordered restoration of Cyrus Mistry as the Executive Chairman of Tata Sons. The NCLAT also held appointment of N Chandrasekaran as executive chairman illegal.
Other Tata group stocks including Tata Power, Tata Chemicals and Tata Global Beverages too shed up to 4.14%.
“Markets hit record highs on expectations of measures from the Centre to support on-going economic weakness. Metals and information technology (IT) stocks traded higher on hopes that easing trade tensions could ensure global growth and increase the order intakes.
“With the budget around the
HOWEVER, TATA GROUP STOCKS FELL AFTER NCLAT RESTORED CYRUS MISTRY AS THE EXECUTIVE CHAIRMAN OF TATA SONS
corner, the government is planning to steer the ship by bringing measures to boost consumption. Investors are keenly watching the on-going GST Council meet, a rate hike is looking unlikely due to a surge in inflation while the focus will be more on revenue realisation,” said Vinod Nair, head of research at Geojit Financial Services.
BSE metal, healthcare, realty, energy, auto and IT indices rose up to 0.84%.
On the other hand, BSE utilities, power and telecom indices slipped up to 0.84%.
Broader BSE midcap and smallcap indices under-performed the benchmarks, shedding up to 0.19%.
Besides stock-specific action, sustained foreign fund inflows boosted market mood here, traders said.
On a net basis, foreign institutional investors bought equities worth ₹1,248.47 crore on Tuesday, as per provisional exchange data.
World stocks perched near record highs following their recent sustained upward movement. Bourses in Shanghai, Hong Kong, Seoul and Tokyo ended on a mixed note, while those in Europe saw tepid trading sentiment.
On the currency front, the rupee depreciated 6 paise against the US dollar to 71.05 (intra-day).