Sensex surges 762 points to close at all-time high
BSE Sensex rallied 762.10 points to settle at 62,272.68, its record closing peak
NSE NIFTY GAINED 216.85 POINTS OR 1.19% TO END AT 18,484.10. DURING THE DAY, IT HIT ITS 52-WEEK HIGH OF 18,529.70, HIGHER BY 262.45 POINTS OR 1.43%
MUMBAI: Equity benchmark BSE Sensex closed at an alltime high of 62,272.68 on Thursday, tracking a firm trend in global markets after the US Fed minutes indicated a slower pace of rate increase that bolstered investors’ sentiment.
Extending its rally to the third straight day, the 30-share BSE benchmark rallied 762.10 points or 1.24% to settle at 62,272.68, its record closing peak. During the day, it jumped 901.75 points or 1.46% to its lifetime high of 62,412.33.
The broader NSE Nifty gained 216.85 points or 1.19% to end at 18,484.10. During the day, it hit its 52-week high of 18,529.70, higher by 262.45 points or 1.43%.
“Two triggers assisted the Sensex rally to record highs. One, in the mother market US, the market construct turned favourable with rising equities, declining bond yields and falling dollar. Two, macro developments in India show steady rise in credit growth and capex indicating strong economic recovery. Along with this, sharp correction in crude is a big positive. This has facilitated this Sensex rally led by largecaps, mainly the HDFC twins, Infosys, TCS and RIL,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
From the Sensex pack, HCL Technologies, Infosys, Wipro, Power Grid, Tech Mahindra, Tata Consultancy Services, Hindustan Unilever, HDFC, HDFC Bank and Mahindra & Mahindra were among the major winners.
Key stock indices Sensex and Nifty rallied over 1% to close at life-time highs following gains in IT, banking and oil stocks and firm trends in global markets on expectations of slower rate hikes by the US Federal Reserve.
Benchmark BSE Sensex rallied 762.10 points or 1.24% to settle at 62,272.68, its record closing peak, as 26 of its components ended in the green. During the day, it jumped 901.75 points or 1.46% to its lifetime high of 62,412.33.
The broader Nifty of the National Stock Exchange jumped 216.85 points or 1.19% to end at a record high of 18,484.10. As many as 44 of its stocks advanced and six declined. During the day, it hit its 52-week high of 18,529.70, higher by 262.45 points or 1.43%.
In the three-day rally, Nifty rose by over 2% or 324 points while Sensex advanced 1,167 points or close to 2%.
“Two triggers assisted the Sensex rally to record highs. One, in the mother market US, the market construct turned favourable with rising equities, declining bond yields and falling dollar. Two, macro developments in India show steady rise in credit growth and capex indicating strong economic recovery.
“Along with this, sharp correction in crude is a big positive. This has facilitated this Sensex rally led by large-caps, mainly the HDFC twins, Infosys, TCS
and RIL,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
From the Sensex pack, Infosys was the lead gainer with a 2.93% rise. HCL Technologies jumped 2.59%, Power Grid by 2.56%, Wipro by 2.43%, Tech Mahindra by 2.39% and TCS by 2%.
Hindustan Unilever, Reliance, ICICI Bank, HDFC, HDFC Bank and Mahindra & Mahindra were among the major winners. Bajaj Finserv, Tata Steel, Bajaj Finance and Kotak Mahindra
Bank were the laggards.
In the broader market, the BSE midcap gauge rose by 0.52% and smallcap index climbed 0.42%.
Among sectoral indices, IT jumped 2.30%, teck climbed 2.12%, oil & gas (1.25%), financial services (1.03%), capital goods (0.98%), energy (0.92%) and FMCG (0.85%).
Only consumer durables index ended marginally lower.
“Investors wound up their short positions on the expiry day, triggered by US Fed minutes indicating a moderate pace of rate hikes going ahead that eventually propelled benchmark indices Sensex & Nifty to new all-time highs.
“Other positive catalysts such as the WTI crude oil prices staying sluggish and the falling US Dollar index and yields improved the risk appetite of investors leading to a broadbased buying,” said Shrikant Chouhan, Head of Equity Research ( Retail), Kotak Securities Ltd.
Elsewhere in Asia, markets in Seoul, Tokyo and Hong Kong ended in the green, while Shanghai settled lower.
Equity exchanges in Europe were trading in the green in the afternoon trade. Wall Street ended higher on Wednesday.
“Led by broad-based buying, domestic indices witnessed solid gains as investors digested the latest Federal Open Market Committee meeting minutes, which hinted that the rate hike cycle may be slowing down. The optimism was further boosted by falling crude prices and the declining dollar index. Crude oil prices dropped over talks of a possible price cap on Russian oil and a rise in US product stockpiles,” said Vinod Nair, Head of Research at Geojit Financial Services.