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Markets at lifetime high; Nifty above 8K for first time

By Jinsy Mathew
Last updated on: September 01, 2014 16:18 IST
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A stock traderBenchmark share indices ended at record closing highs with the Nifty breaching the psychological 8,000 level for the first time after better-than-expected first quarter GDP data fuelled a rally led by capital goods and bank shares.

The 30-share Sensex ended up 229 points at 26,868 after hitting a record high of 26,900 and the 50-share Nifty ended up 73 points at 8,028 after touching a record high of 8,035.

The Bank Nifty also ended above 16,000 for the first time.

For the quarter ended June this year, India's gross domestic product grew at a nine-quarter high of 5.7 per cent, compared with 4.6 per cent in the previous quarter, driven largely by industry, official data showed on Friday.

Rupee was trading at 60.50 almost unchanged. Gains in domestic share market aided the rupee, but sentiment remained cautious.

The benchmark Nifty rallied 1,000 points or 17% from 7,000 in 78 trading sessions since May 12, till date to surpass the 8,000 mark led by autos, pharma, information technology (IT), metal, banks and realty sectors.

The rally has been backed by sustained foreign institutional investor (FII) flows and participation of domestic mutual funds, which have bought close to Rs 60,000 crore since May 9.

Better-than-expected corporate earnings for the quarter ended June also boosted sentiment.

FII inflow totalled Rs 44,426 crore ($7.4 billion), while mutual funds invested a net of Rs 14,012 crore in Indian equities between May 9 and August 28, data from the Securities and Exchange Board of India showed.However, index heavyweights Reliance Industries and ITC were among the underperformers recording less than 5% gain during the period.

Sectors & Stocks

All sectoral indices except FMCG, ended in the green led by Capital Goods, Metal, Realty, Power and Bankex among others.

Capital goods shares have gained on hopes that order inflows would improve after upbeat first quarter GDP.

L&T spurted by over 3%.

Auto stocks were in focus amid release of monthly

sales figures from today.

Hero Moto Corp up nearly 65 was the top Sensex gainer along with Maruti Suzuki which gained 4.7%, after hitting a record high of Rs 2,868, amid better-than-expected sales growth in August led by the compact car segment.

Tata Power, Hindalco, GAIL, Cipla, ICICI Bank and Coal India up 2.5-3.5% were the top gainers among Sensex-30.

Among the ones in red were Sun Pharma, ITC, HDFC, BHEL and Tata Motors down 1-1.5%.

Among other stocks, Brigade Enterprises soared 8% to Rs 136 after the company said Brigade Group and GIC, Singapore's sovereign wealth fund, through its affiliate Company, have entered into a Memorandum of Understanding (MOU) to jointly invest up to Rs 1,500 crore in residential and mixed-use developments in select cities of South India.

Natco Pharma gained 5% to Rs 1267 also its 52-week high on the BSE after the pharmaceutical company announced that its marketing partner in the USA, Mylan Inc. has filed an Abbreviated New Drug Application (ANDA) for a three-times-aweek generic Copaxone and has been accepted by the US Food and Drug Administration (USFDA).

Bajaj Electricals surged nearly 3% to Rs 292 after the company's engineering and project business unit bagged four new orders aggregating to Rs 602 crore.

French electrical engineering group Alstom India surged 7% to Rs 519 after winning contracts worth 800 million euros (approx Rs 6,320 crore) in order to build high-voltage direct current power transmission lines in India, South Korea and Canada, the firm added.

The market breadth was very positive on BSE. 1926 stocks advanced while 1008 stocks declined.

Global Markets

Most Asian markets ended higher on Monday with China's benchmark share index Shanghai gaining the most.

Shares in Japan ended marginally higher, amid low volumes, with most action seen in the broader market even as worries over the country's economic recovery capped upside gains.

The benchmark Nikkei ended up 0.3% at 15,477.

Straits Times and Kospi were teh only indices to close in red.

Meanwhile, markets in Europe were weak with all the major makets like CAC, DAX and FTSE down 0.1-0.4%.

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Jinsy Mathew in Mumbai
Source: source

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