Showing no signs of exhaustion, the market continued upward sprint on the first day of December contract as both the key yardsticks, the S&P BSE Sensex and the CNX Nifty galloped to their new historic highs, up by 255 points and 94 points respectively, ahead of GDP data later in the day and RBI’s monetary policy on coming Tuesday, extending gains for the third straight day.
Consistant fall in the global crude oil prices after OPEC decided not to cut oil output to support prices and sustained capital inflows mainly kept the market tempo optimistic.
Brent for January settlement was trading above USD 72 a barrel on the London-based ICE Futures Europe exchange, the lowest since August 2010, giving a much needed relief to India, which imports over 70 per cent of its oil requirements.
As a result, it will help to save foreign exchange of the country and also lower the oil subsidy, which is already weighing on the Indian economy. It will also lead to narrowing current account deficit (CAD) and fiscal deficit.
Stocks related to oil like oil marketing companies, Auto, Airline stocks, Paint and Tyre companies attracted heavy buying interest.
However, banking stocks were at the forefront of the rally ahead of the Reserve Bank of India (RBI’s) monetary policy review on December 2, 2014 on hopes of cut in the interest rates as also expectations of lower fiscal deficit.
The benchmark BSE 30-share barometer resumed better and shot up to an intra-day all-time peak of 28,822.37 before coming down slightly on weak European cues to log its record closing high of 28,693.99, up by 255.08 points or 0.90 pct.
Similarly, the broader 50-issue CNX Nifty of the NSE also flared up by 94.05 points or 1.11 pct to register its fresh closing peak of 8,588.25. It also hit new intra-trade peak of 8,617.00.