Sensex jumps 124 points to hit all-time high of 41,798, Nifty at record peak of 12,272; Yes Bank, Hero MotoCorp, Tata Motors among top gainers

Yes Bank was the top gainer in the Sensex pack rising up to 2.91 percent, followed by SBI, ICICI Bank, Hero MotoCorp, Tata Motors, TCS, L&T and Bajaj Finance,

FP Staff December 20, 2019 10:24:52 IST
Sensex jumps 124 points to hit all-time high of 41,798, Nifty at record peak of 12,272; Yes Bank, Hero MotoCorp, Tata Motors among top gainers
  • After hitting its record intra-day high of 41,809.96, the 30-share BSE index was trading 102.51 points or 0.25 percent higher at 41,776.43 in opening session

  • The NSE Nifty rose 22.70 points or 0.19 percent to 12,282.40. It hit an intra-day lifetime high of 12,284.65

  • According to experts, the market rally may be fuelled by hopes of a Budget stimulus to spur economic growth.

Equity benchmarks Sensex and Nifty on Friday started at fresh highs led by gains in index-heavyweights RIL, ICICI Bank and SBI amid uninterrupted foreign fund inflow.

After hitting its record intra-day high of 41,809.96, the 30-share BSE index was trading 102.51 points or 0.25 percent higher at 41,776.43 in the opening session.

Similarly, the broader NSE Nifty rose 22.70 points or 0.19 percent to 12,282.40. It hit an intra-day lifetime high of 12,284.65.

Yes Bank was the top gainer in the Sensex pack rising up to 2.91 percent, followed by SBI, ICICI Bank, Hero MotoCorp, Tata Motors, TCS, L&T and Bajaj Finance, according to a PTI report.

On the other hand, Vedanta was the top loser, shedding up to 0.97 percent. Kotak Bank, Tata Steel, HDFC Bank and HUL were also trading in the red.

Sensex jumps 124 points to hit alltime high of 41798 Nifty at record peak of 12272 Yes Bank Hero MotoCorp Tata Motors among top gainers

Representational image. Reuters.

In the previous session, the 30-share gauge settled 115.35 points, or 0.28 percent, higher at its fresh closing record of 41,673.92. Similarly, the Nifty rose 38.05 points, or 0.31 percent, to its new peak of 12,259.70.

According to experts, the market rally may be fuelled by hopes of a Budget stimulus to spur economic growth.

The positive momentum is premised on improvement in earnings on the back of tailwinds from lower corporate tax rate, good monsoon, transmission of lower interest rates and benefits of Insolvency and Bankruptcy Code in the new year, they said.

Further, persistent foreign fund inflow also kept market on a high, as per traders.

On a net basis, foreign institutional investors bought equities worth Rs 739.43 crore, while domestic institutional investors sold shares worth Rs 493.95 crore on Thursday, data available with stock exchange showed.

Rupee slips 12 paise to 71.15 against US dollar

The rupee opened on a weak note and fell 12 paise to 71.15 against the US dollar in early trade on Friday amid rising crude oil prices and strengthening of the US dollar vis-a-vis other currencies overseas.

Forex traders said cautious opening in domestic equities weighed on the local unit.

At the Interbank Foreign Exchange, the rupee opened weak at 71.15 showing a decline of 12 paise over its previous closing.

The Indian rupee on Thursday had closed at 71.03 against the US dollar.

Traders said sustained foreign fund inflows added support to the local unit.

Meanwhile, Brent crude futures, the global oil benchmark, rose 0.11 percent to $66.61 per barrel.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, as they purchased shares worth Rs 739.43 crore on Thursday, as per provisional data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.05 per cent to 97.43.

Domestic bourses opened on a cautious note on Friday with benchmark indices Sensex trading 57.79 points up at 41,731.71 and Nifty up by 23.90 points at 12,283.60.

The 10-year government bond yield was at 6.63 percent in morning trade

Asia stocks digest meaty gains

Asian shares snoozed near 18-month highs on Friday as trade thinned in the run-up to Christmas and investors seemed content to digest the chunky gains already made so far this month.

MSCI’s broadest index of Asia-Pacific shares outside Japan was a fraction firmer in early trade, having gained 1.2 percent for the week so far and almost 5 percent for the month.

Japan's Nikkei inched up 0.1 percent after reaching a 14-month top earlier in the week. It was ahead by 2.5 percent for the month so far. South Korea's market added 0.25 percent on the day and 5.5 percent for December.

E-Mini futures for the S&P 500 ESc1 held at all-time highs having put on 1.2 percent for the week.

Sentiment had been bolstered after US Treasury Secretary Steven Mnuchin said the United States and China would sign their Phase One trade pact in early January.

Mnuchin said it was completely finished and just undergoing a technical “scrub,” though Beijing has so far dodged all details of the deal.

The US House of Representatives also overwhelmingly approved a new North American deal that leaves $1.2 trillion in annual US-Mexico-Canada trade flows largely intact.

The S&P 500 hit a sixth straight record high, its longest streak since January 2018, and the Nasdaq climbed for the seventh session in a row. The S&P 500, Nasdaq and Dow all notched record closing highs.

The Dow ended Thursday up 0.49 percent, while the S&P 500 gained 0.45 percent and the Nasdaq 0.67 percent.

The market shrugged off US President Donald Trump’s impeachment, as the Republican-controlled Senate is widely expected to keep him in office.

Pound in peril

It was mostly quiet in currencies, though sterling was nursing a grudge after suffering a vicious reversal that left it facing its worst weekly fall since late 2017 at 2.4 percent.

Early Friday, the pound was huddled at $1.3017 GBP=D3 having toppled from a $1.3514 peak when Prime Minister Boris Johnson used his sweeping election victory to revive the risk of a hard Brexit.

“We see the biggest risks being to GBP/USD depreciation over the next two weeks as Brexit preparations take place amidst the most sluggish UK economy in 10 years,” said Richard Grace, chief currency strategist at CBA.

“GBP can fall because the trade concerns are taking place at a time when the UK trade deficit is the widest it has been in 10 years, and the current account deficit is at a historically large 5.0 percent of GDP.”

Other currency pairs were little changed on the week with the euro stuck at $1.1124 having found support around $1.1100. The dollar idled at 109.36 yen, having spent the entire week in a tight 10917/109.67 range.

Against a basket of currencies, the dollar had edged up 0.2 percent for the week to 97.393 thanks mainly to the steep drop in sterling.

Spot gold was flat at $1,479.00 per ounce, and up just a fraction for the week so far.

Oil prices consolidated after reaching the highest level in three months, buoyed by falling crude inventories and the easing in US-China trade tensions.

Early Friday, US crude CLc1 had eased back 11 cents to $61.07 a barrel, while Brent crude LCOc1 futures were yet to trade.

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