Riding high of the back of expansion in economic growth, the benchmark S&P BSE Sensex today again rode to an all-time high and continued its north-bound journey for the seventh straight session to end up by over 229 points at 26,867.55 while the CNX Nifty crossed 8K-mark for the first time in the history to settle higher by 73 points at 8,027.70.
Propped up by smart progress in country’s gross domestic product (GDP) to 5.7 pct for the April-June quarter –highest in the past two-and-half years– from 4.7 pct for the same period in the last fiscal, according to data released late last Friday by the Central Statistics Office (CSO), the market continued its record breaking spree on buying as operators preferred to go long on the first day of September series.
The market also got a boost after Prime Minister Narendra Modi today promised to remove roadblocks to foreign investment and said that economy is out of difficult situation and more reforms in offing.
Besides S&P BSE FMCG, rest other 11 sectoral indices ended higher between 0.18 pct and 2.79 pct with Metal, Capital Goods, Realty, Power and banking sectors taking the lead.
The 30-share barometer, Sensex, resumed strong in line with positive cues from Asian markets and rallied further to an intra-day historic peak of 26,900.30 before concluding at 26,867.55 –also new closing high–, showing a rise of 229.44 points or 0.86 pct.
In straight seventh session, it has flared up by 553.22 points or 2.10 pct. In last five trading days in a row, the sensex is registering its new closing peak.
Similarly, the broader CNX Nifty of the NSE also logged new intra-day high of 8,035.00 before recording fresh closing peak of 8,027.70, a net gain of 73.35 points or 0.92 pct.
Strong sales number in August posted by some auto makers, including Maruti Suzuki, was another positive factor for the markets, brokers said, adding that operators preferred to go long on the first day of September series.
Among sectoral indices, BSE Metal sector index rose (2.79 per cent), followed by Capital Goods (2.75 per cent), Realty (2.72 per cent) and Power (2.60 per cent).
The BSE Bankex rose by 1.79 per cent, Consumer Durables 1.63 per cent, Oil & Gas 1.61 by per cent and Auto by 1.32 per cent.
A near term hope of zero losses on sale of diesel has given a much needed boost to the oil marketing & upstream companies, Mehta said.
“Both FIIs and DIIs were the net buyers for the month of August. Local equities has over looked the ongoing crises in Ukraine and Gaza and focused on the recent positive sentiments,” Jignesh Chaudhary, Head of Research, Veracity Broking Services said.
Among 30 Sensex shares, 22 scrips ended higher, while eight others finished lower. Sunpharma fell by 1.46 per cent, ITC by 1.37 per cent and HDFC by 1.19 per cent.
Meanwhile, the HSBC India Manufacturing Purchasing Managers’ Index (PMI), a measure of factory production, eased to 52.4 in August from 53 in July, though remaining “solid” as reading above 50 indicates growth while a lower reading means contraction.
The total market breadth turned positive as 1,923 stocks closed higher, 1,010 finished lower while 137 ruled steady.
“Persistent efforts by the Modi government to revive manufacturing, create jobs and hack through the thicket of regulatory labyrinth to rev-up the engine of growth is responsible for the buoyancy in Indian markets,” Ajay Bodke, Head – Investment Strategy & Advisory at Prabhudas Lilladher said.