Sensex jumps 129 points to hit lifetime high of 41,480 in opening session; Nifty rises 34 points to record peak of 12,199.05

  • After scaling its record peak, the Sensex pared some gains to trade 106.90 points or 0.26 percent higher at 41,459.07 in morning session

  • Nifty hit its all-time (intra-day) high of 12,199.05 in opening session

  • The rupee opened on a weak note and fell 13 paise to 71.11 against the US dollar in early trade on Wednesday

The Sensex jumped 128.74 points to hit lifetime high of 41,480.91 in in early trade on Wednesday tracking gains in index heavyweights TCS, HDFC Bank, Infosys and RIL amid unabated foreign fund inflow.

After scaling its record peak, the 30-share index pared some gains to trade 106.90 points or 0.26 percent higher at 41,459.07 in morning session. Similarly, the broader Nifty hit its all-time (intra-day) high of 12,199.05 in opening session. It was trading 19.55 points or 0.16 percent higher at 12,184.55, according to PTI.

Tata Motors was the top gainer in the Sensex pack rising up to 1.86 percent, followed by Tata Steel, Tech Mahindra, M&M, TCS, Vedanta and Infosys.

On the other hand, HUL was the top loser, shedding up to 1.45 percent. Yes Bank, ICICI Bank, SBI and ONGC were also trading in the red.

In the previous session, the 30-share gauge settled 413.45 points, or 1.01 percent, higher 41,352.17 -- its fresh closing peak. The 50-scrip Nifty soared to its new intra-day high of 12,182.75 before ending 111.05 points, or 0.92 percent, up at 12,165—a record closing level.

 Sensex jumps 129 points to hit lifetime high of 41,480 in opening session; Nifty rises 34 points to record peak of 12,199.05

According to traders, foreign fund inflow boosted market mood here.

Investors were also seen optimistic ahead of the GST Council meet amid expectations of positive outcome from the same, analysts said.

On a net basis, foreign institutional investors bought equities worth Rs 1,248.47 crore, while domestic institutional investors sold shares worth Rs 908.16 crore, data available with stock exchange showed on Monday.

Rupee high

The rupee opened on a weak note and fell 13 paise to 71.11 against the US dollar in early trade on Wednesday amid strengthening of the US dollar against other currencies overseas. Forex traders said muted opening of domestic equities weighed on the local unit.

At the Interbank Foreign Exchange, the rupee opened weak at 71.08 then fell to 71.11 against the US dollar, showing a decline of 13 paise over its previous closing.

The local unit on Tuesday had closed at 70.98 against the greenback.

Traders said foreign fund inflows and easing crude oil prices capped the losses of the local unit.

Brent crude futures, the global oil benchmark, fell 0.53 percent to $65.75 per barrel.

Foreign institutional investors (FIIs) remained net buyers in the capital markets, as they purchased shares worth Rs 1,248.47 crore on Tuesday, as per provisional data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.10 percent to 97.32.

Domestic bourses turned cautious on Wednesday with benchmark indices Sensex trading 25.84 points up at 41,378.01 and Nifty up by 10.85 points at 12,175.85.

The 10-year government bond yield was at 6.75 percent in morning trade

Asian shares in negative zone

Asian stocks camped out at 18-month peaks on Wednesday having climbed for five straight sessions, while the British pound was licking fresh wounds as revived Brexit fears came back to bite it.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent to its highest since June last year. Japan's Nikkei dipped 0.3 percent and off a 2019 top, Reuters said.

Shanghai blue chips added 0.3 percent, after hitting an eight-month peak on Tuesday, as Beijing trimmed another short-term interest rate.

E-Mini futures for the S&P 500 were little changed, while EUROSTOXX 50 futures fell 0.1 percent.

Upbeat economic news had helped the S&P 500 reach a record for the fourth straight session, building on its 27 percent gain this year. The Dow ended Tuesday up 0.19 percent, while the S&P 500  gained 0.07 percent and the Nasdaq 0.11 percent.

U.S. housing starts were surprisingly strong in November, and building permits rose to the highest level since May 2007. Manufacturing output picked up more than expected as a strike at General Motors Co ended.

A run of better data recently has helped calm fears of recession while the “phase one” Sino-US deal on trade seems to have lifted some of the uncertainty on the global outlook.

The sea change was clear in BofA Global Research’s latest survey of fund managers with recession concerns diving 33 percentage points to a net 68 percent of investors saying a recession is now unlikely in 2020.

Global growth expectations jumped 22 percentage points, marking the biggest 2-month rise on record. As a result, funds’ allocation to global equities climbed 10 percentage points to a net 31 percent overweight, the highest level in a year.

Yet it might be too soon to declare an all-clear on the political front with UK Prime Minister Boris Johnson upsetting markets by taking a hard line on Brexit talks.

Johnson will use the prospect of a Brexit cliff-edge at the end of 2020 to demand the EU give him a comprehensive free trade deal in less than 11 months.

The threat of a hard exit sent shivers through sterling, which slid 1.5 percent in its largest one-day fall this year.

The pound was down another 0.4 percent on Wednesday at $1.3075 GBP=D3 having shed all the gains made during the Conservative Party's big election win.

“Johnson’s move aimed at cancelling the possibility of an extension, has essentially increase the possibility of a no deal Brexit,” said Rodrigo Catril, a senior FX strategist at NAB.

“It suggests sterling’s path in 2020 looks set to be a volatile one, a hard Brexit cannot be ruled out, but the probability of a positive Brexit resolution has also increased.”

Sterling’s slide gave the dollar index a lift to 97.243 against a basket of currencies, extending a bounce from last week’s five-month low of 96.588.

The euro also surged on the pound and was steady on the dollar at $1.1140. The yen was little changed at 109.46 per dollar.

Spot gold idled at $1,475.24 per ounce, after a couple of very quiet sessions.

Oil prices eased from three-month highs as data showed US crude stocks rose unexpectedly in the most recent week.

US crude fell 38 cents to $60.56 a barrel, while Brent crude futures lost 29 cents to $65.81.

--With inputs from agencies

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Updated Date: Dec 18, 2019 10:19:38 IST