Markets ended at record closing highs and the Sensex topped 28,000 mark intra-day for the first time as foreign institutional investors remained aggressive buyers in equities.
The 30-share Sensex ended 56 points up at 27,916 after hitting a fresh record high of 28,010.39 and the 50-share Nifty ended 14 points up at 8,338 after touching a record high of 8,365.55.
Foreign institutional investors remained buyers for the fourth straight session on Monday after they bought equities worth Rs 1,413 crore on Monday, as per provisional stock exchange data.
Slew of economic reforms recently announced by the government along with decline in global crude oil prices aided the buying interest of the investors.
On the macro economic front, the disappointing services PMI data dampened the investor sentiment.
Growth in India's dominant service industry stalled last month as new orders came in at a weaker pace, adding to pressure on the government to drive through economic reforms, a business survey showed on Wednesday.
The HSBC Purchasing Managers' Index (PMI), compiled by Markit, fell to 50 in October from September's 51.6, the lowest in six months and right on the break-even point between growth and contraction.
Global Markets:
Japanese stocks rose to new seven-year highs on Wednesday as heavyweight Fast Retailing Co surged on strong monthly sales, while exporters got a boost as the dollar rose against the yen after U.S. mid-term election results have showed Republicans made major gains.
Fast Retailing, which soared 2.3%, contributed hefty 37.50 points to the Nikkei benchmark after it said same-store sales at its Uniqlo clothing outlets in Japan rose 10.5% in October from a year earlier.
The Nikkei benchmark, which was trading in negative territory earlier in the day, ended 0.4 percent higher to 16.937.32, the highest closing level since October 2007.
Growth in China's services sector weakened further in October as new business cooled, a private survey showed on Wednesday, reinforcing signs of a gradual economic slowdown that could prod the government to unveil fresh stimulus measures.
The services purchasing managers' index (PMI) compiled by HSBC/Markit pulled back to 52.9 in October - the weakest reading since July - from 53.5 in September. Shanghai Composite ended 0.4% lower.
Furthermore, Hang Seng lost 0.6%. On the other hand, european stocks rose on Wednesday, reversing most of the previous session's losses, as a raft of postive results from companies.
FTSE 100, DAX and CAC 40 indices gained between 0.5-1%. Sectors & Stocks: On the sectoral front, BSE Bankex was the top gainer up 1.4% followed by Healthcare, IT and Capital Goods indices up between 0.5-1%.
However, BSE Metal index was the top loser down 3% followed by Power and Oil & Gas indices down between 0.5-1%.
Renewed buying was visible in the healthcare space. Dr Reddy’s Lab and Sun Pharma gained over 2% each.
Morgan Stanley upgraded Dr. Reddy's stock to "overweight" from "equal-weight"; raises price target to 3,875 rupees from 3,049 rupees.
Banks which are a proxy to the economy witnessed buying interest from investors after global rating agency Standard & Poor’s (S&P) upgraded India’s credit outlook to ‘stable’ from ‘negative’.
Further, moderation in consumer price inflation during September 2014 also fuelled rally in bank shares. HDFC Bank, SBI, Axis Bank and ICICI Bank surged between 0.2-3.5%. Infrastructure scrips continued to attract investor interest as the government relaxed foreign direct investment (FDI) rules in the construction sector by reducing minimum built up area as well as capital requirement and easing exit norms. L&T and BHEL climbed between 0.5-2%.
Infosys, ITC and HUL were some of the notable names in green and ended up nearly 1% each. On the flip side, shares of metal companies ended lower up to 5% on the NSE in today’s trade. The services purchasing managers' index (PMI) compiled by HSBC/Markit pulled back to 52.9 in October, the weakest reading since July, from 53.5 in September.
China is the world's largest consumer of steel, copper and aluminum. Sesa Sterlite, NALCO, SAIL, Tata Steel, Jindal Steel, Hindalco, Jindal Steel, JSW Steel and Coal India were down between 1-5% on the National Stock Exchange (NSE).
Power stocks traded dim in today’s trade. NTPC and Tata Power lost nearly 1.5% each. Shares of most of the frontline automobiles companies continued to trade in red after reporting drop in vehicle sales during the month of October.
M&M, Bajaj Auto and Hero MotoCorp declined between 0.3-2.5% .
Brent crude oil fell more than three per cent to its lowest level in more than four years at near $82 a barrel on Tuesday, after top oil exporter, Saudi Arabia cut sales prices to the United States.
RIL and ONGC lost between 0.5-1%. Telecom major Bharti Airtel ended down 2.5% on profit booking.
Bharti Airtel has called off its plans to acquire business and assets of Mumbai based Loop Mobile, for about Rs 700 crore, as the Department of Telecom is yet to clear the deal.
Among other shares, IPCA Laboratories slumped 10.5% to Rs 668 on the BSE as Credit Suisse downgraded the stock to "underperform" from "neutral", citing negative USFDA observations.
Clariant Chemicals (India) tumbled 7% to Rs 900 on BSE at 0946 hrs after the company reported a net loss of Rs 1.32 crore in Q3 September 2014, compared with net profit of Rs 123.99 crore in Q3 September 2013.
Vindhya Telelinks soared 18% to Rs 549 on the BSE after Reliance Mutual Fund bought nearly 4% stake in telecom cables firm for about Rs 20 crore through open market.
Hexaware Technologies surged 10% to Rs 216 after reporting a 7.9% quarter-on-quarter (qoq) growth in revenues for the third quarter ended September 2014 (Q3) in dollar terms. Broader markets too retreated from their intra-day highs. T
he small and midcap indices ended up between 0.2-0.8%. The market breadth ended positive owing to the gains in broader markets. 1,637 stocks advanced while 1,378 stocks declined on the BSE
