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Rediff.com  » Business » Nifty, Sensex get a Modi boost

Nifty, Sensex get a Modi boost

Last updated on: March 14, 2017 17:29 IST

A strong set of industrial output numbers for January provided the perfect backdrop to reap more dividends, with the  IIP having expanded 2.7 per cent year-on-year.

The stunning election success of the Bharatiya Janata Party in Uttar Pradesh gave the markets a rush of adrenaline as the Nifty pulled off an all-time closing high of 9,087 and the Sensex raced to a two-year high on Tuesday.

The euphoria even saw the 50-share NSE index breaking through the 9,100-mark to hit 9,122.75, an all-time intra-day high too.

Intra-day, the rupee flexed muscles, climbing to 66.14. Despite a sharp increase in WPI inflation, investors set aside all their caution and pumped in more money on hopes that the assembly poll win will make the government push through bold reforms.

A strong set of industrial output numbers for January provided the perfect backdrop to reap more dividends, with the  IIP having expanded 2.7 per cent year-on-year.

At one point, the 30-share blue-chip index rallied 615.70 points to hit a high of 29,561.93. In the end, it settled up 496.40 points, or 1.71 per cent, at 29,442.63 -- a level last seen on March 5, 2015.

The gauge had gained 44 points in the previous two sessions. Markets were shut on Monday for Holi.

The 50-scrip Nifty settled higher by 152.45 points, or 1.71 per cent, at a life-time high of 9,087, surpassing its previous record of 8,996.25 on March 3, 2015.

Foreign funds net purchased shares Rs 412.14 crore last Friday, as per the provisional figures.

February’s wholesale price inflation climbed to 6.55 per cent, from 5.25 per cent in the previous month. Expectations of more liquidity in bourses had a positive impact, traders said.

The BSE capital goods index gained the most, rising 3.06 per cent, followed by realty 2.57 per cent, consumer durables 2.40 per cent, bank 1.93 per cent and FMCG 1.60 per cent.

"The market started the day with a gap-up opening, triggered by the strong performance of the BJP in the recently held five-state elections in India," said Karthikraj Lakshmanan, senior fund manager – Equities, BNP Paribas Mutual Fund.

ICICI Bank was the best performer with a 5.99 per cent gain. Support also came from Hindustan Unilever (4.54 per cent), L&T (4.40 per cent), HDFC Ltd (3.69 per cent), Asian Paints (3.51 per cent), Maruti Suzuki (3.02 per cent) and AdaniPorts (2.92 per cent).

Sun Pharma rose 3.61 per cent to Rs 708.25 after the US health regulator proposed to lift the import alert on the company's Mohali (Punjab) manufacturing plant.

With the buying activity gathering momentum, second-line stocks continued their upward sprint. The BSE mid-cap and small-cap indices rose 1.43 per cent and 1.19 per cent, respectively.

Other Asian markets ended mixed while European shares remained indecisive in early session as investors awaited the start of the Federal Reserve's policy meeting. 

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