Markets raced past milestones on a record-setting spree on Wednesday, with the benchmark Sensex closing above the 30,000-mark for the first time, while the broader Nifty hit a new peak, buoyed by unabated funds inflows and a global rally.
Stocks saw frenzied buying, in line with global shares, which have been on a high after the first round victory of centrist Emmanuel Macron in French presidential elections. Investors are also keeping an eye on United States President Donald Trump’s much-awaited tax reforms.
Traders said the impressive show by the ruling Bharatiya Janata Party in Delhi civic polls added to the positivity.
The BSE 30-share Sensex opened on a strong footing and surged to a lifetime high of 30,167.09 points in intra-day trade, before settling at 30,133.35, up 190.11 points, or 0.63 per cent.
This surpassed its previous record close of 29,974.24, reached on April 5. The gauge had hit its previous intra-day high of 30,024.74 on March 4, 2015.
The Sensex has gained 768.05 points or 2.62 per cent in three days.
Similarly, the broader 50-issue NSE Nifty scaled a new high of 9,367 before finally settling 45.25 points, or 0.49 per cent higher at 9,351.85, a new record closing.
Its previous closing high of 9,306.60 was hit in Tuesday’s trade. It also broke the previous intra-day record of 9,309.20.
“Market has made a higher high on account of rising global optimism due to ease in political risk in Eurozone and expectation of tax reform in the US.
“Volatility emerged during the late hours due to profit booking but short covering ahead the expiry navigated the direction back to north. Optimism on earnings and continued buying by local investors is directing the recent rally in the market,” said Vinod Nair, Head of Research, Geojit Financial Services.
The rupee strengthened past the 64-mark to a near 21-month high of 63.93 (intra-day) against the dollar, which added to the momentum.
Meanwhile, foreign portfolio investors (FPIs) and domestic institutional investors bought shares worth a net Rs 178.82 crore and Rs 998.26 crore respectively yesterday, as per provisional data from the stock exchanges.
Overseas, Asian indices ended higher following overnight rally in US stocks on strong earnings announcements and expectations surrounding US President Donald Trump’s impending tax reforms.
Tokyo’s Nikkei ended up 1.1 per cent, while Hong Kong’s Hang Seng rose 0.5 per cent, its fifth straight day of gains. Shanghai Composite Index edged up 0.2 per cent.
Key indices in Europe, however, were mixed in their morning deals, with Paris CAC 40 rising 0.1 per cent, London’s FTSE slipping 0.06 per cent and and Frankfurt's DAX 30 declining 0.03 per cent.
Back home, of the 30-share Sensex pack, 18 scrips ended higher while 12 closed lower.
Major gainers were ITC 3.36 per cent, M&M 3.29 per cent, HDFC 2.36 per cent, HUL 1.78 per cent, ICICI Bank 1.61 per cent, Tata Motors 1.17 per cent, Bharti Airtel 1.14 per cent, Maruti 0.88 per cent, HDFC Bank 0.73 per cent and Asian Paints 0.73 per cent.
However, Adani Ports fell 2.31 per cent, Infosys 1.61 per cent, Dr Reddy’s 1.31 per cent, Power Grid 1.30 per cent, Reliance 1.13 per cent, Wipro 0.80 per cent and ONGC 0.66 per cent.
Among BSE sectoral and industry indices, FMCG rose 2.04 per cent, auto 1.01 per cent, bankex 0.82 per cent, finance 0.74 per cent and metal 0.47 per cent.
However, realty fell 2.95 per cent, energy 1.13 per cent, IT 1.08 per cent, oil & gas 1.02 per cent, teck 0.89 per cent, power 0.77 per cent, utilities 0.76 per cent, consumer durables 0.61 per cent and healthcare 0.58 per cent.
The market breadth turned negative as 1,954 stocks ended lower, 952 closed higher while 139 ruled steady.
The total turnover on BSE amounted to Rs 5,021.73 crore, higher than Rs 4,006.89 crore registered during the previous trading session.
IMAGE: A 30-kg cake was cut at Bombay Stock Exchange in celebration of Sensex crossing the 30,000 mark. Photograph: Sahil Salvi
