Sensex, Nifty scale new highs as markets rise for 9th consecutive day

Mumbai: Rising for the ninth straight session, the BSE Sensex gained 120 points to close at fresh peak of 27,139.94 today in IT stocks led rally powered by positive global cues and continued overseas fund inflows.

The wide-based NSE Nifty index rose by 31.55 points to close at record 8,114.60 points. The index touched intra-trade record high of 8,141.90 points, surpassing previous record of 8,101.95 hit yesterday.

The 30-share Sensex opened on a strong footing and rose quickly to historic high of 27,225.85 points as buying momentum picked up.

But gains were capped by profit-booking at record levels and the barometer settled at 27,139.94 – fresh record closing level – with net gains of 120.55 points or 0.45 per cent over last close. The Sensex bettered its previous closing peak of 27,019.39 hit yesterday.

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The gauge has now gathered over 825 points in nine straight sessions.

IT, realty, teck metal and capital goods stocks were in keen demand while some counters from FMCG, banking and power segments suffered losses.

IT stocks, led by TCS, were in the limelight on fresh spell of buying after bullish US manufacturing and construction data. TCS, Infosys and Wipro rose between 2.45 per cent and 3.4 per cent.

“Global markets also showed positive signs as tensions within Russia and Ukraine seemed to ease. Softer crude oil prices further maintained positive momentum on the bourses. Stock specific buying was seen with Bharti Airtel and Coal India amongst major gainers,” said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Ltd.

Russia and Ukraine today reached an agreement on a cease-fire in eastern Ukraine, sending lower brent crude prices to 16-month low near $100 a barrel.

Meanwhile, Foreign portfolio investors (FPIs) infused Rs 672.81 crore yesterday as per provisional data.

The recent GDP data, narrowing current account deficit (CAD), rise in foreign direct investment (FDI) in Q1 June which comfort the balance of payment (BoP) position and hopes of more foreign funds inflow after Prime Minister’s Japan’s visit already aided the market upmove, brokers said.

Shares, spread over a broad front, have been hitting new highs for the past few sessions on optimism that the Narendra Modi-led government would announce more reforms that could bring economy back on track, they added.

Among 30 Sensex scrips, 15 ended higher while remaining declined. Major gainers were Infosys (3.41 per cent), Coal India (3.40 per cent), Wipro (3.00 per cent), Bharti Airtel (2.87 per cent), TCS (2.45 per cent), Larsen (1.36 per cent) and Tata Steel (1.26 per cent).

Tata Motors (1.21 per cent), M&M (1.18 per cent), Axis Bank (1.17 per cent) and Tata Power (1.07 per cent) also rose.

However, Gail dropped by 1.93 per cent, ITC 1.65 per cent, ONGC 1.48 per cent, Bajaj Auto 1.28 per cent and BHEL 0.96 per cent.

Among the BSE sectoral indices, IT rose by 2.50 per cent, Teck 2.15 per cent, Realty 2.15 per cent and Metal by 1.16 per cent.

The total market breadth tuned negative as 1,529 stocks closed lower, 1,494 finished higher while 112 ruled steady.

Jignesh Chaudhary, Head of Research, Veracity Broking Services said, “FIIs buying in the local equities also helped the market. Better than expected data released from different countries has improved investor’s confidence in the stocks which has lead to the global rally.”

Asian markets, excepting South Korea, ended higher today between 0.38 per cent and 2.30 per cent after data underscored that the US economy continues to gather gradual momentum and positive China’s service data.

European markets were also trading higher as geopolitical worries receded after Ukraine-Russia ceasefire. Key benchmark indices in France, Germany and the UK rose by 0.74 per cent to1.19 per cent.

PTI