Mumbai: The new-found optimism spurred stocks to new levels as the Nifty ended at a new peak of 9,160 on Friday and the Sensex notched up minor gains, with liquidity giving investors enough confidence.
Fund inflows continued unabated after the BJP’s sterling win in UP and Uttarakhand assembly elections.
Buying activity picked up after the GST Council on Thursday paved the way for rollout of the new tax regime from July, triggering interest in FMCG stocks.
The NSE Nifty crossed the key 9,200-mark for the first time in early hours to hit an all-time high of 9,218.40.
But it settled at 9,160.05—a new high—up 6.35 points, or 0.07%, surpassing Thursday’s close of 9,153.70. The Sensex closed up 63.14 points, or 0.21%, at 29,648.99.
On a weekly basis, the BSE Sensex rallied 702.76 points, or 2.42%, and the Nifty 225.50 points, or 2.52%, extending gains for the second straight week.
However, global markets showed some weakness as Asian bourses struggled and caution prevailed following the previous day’s rally.
Investors were concerned about a lack of detail on Donald Trump’s tax reforms and spending promises in his first budget.
The BSE gauge had gained 187.74 points in previous session, tracking firm global markets after the prospects of a gradual approach to US rate hike removed a big uncertainty.
Shares of cigarette makers were in the limelight after the GST Council approved a proposal to cap cess on demerit goods such as tobacco and cigarettes at 290% or Rs4,170 per 1,000 cigarette sticks.
Among cigarette stocks, VST Industries led gains by surging 7.55% to Rs 2,839.45 while Godfrey Phillips rose 0.77% to Rs 1,294.95.
In the 30-share Sensex kitty, ITC Ltd, cigarette giant, emerged as the top gainer by climbing 4.85% to Rs 281.20, followed by Infosys by 1.12% to Rs 1,040.
Other gainers were Wipro, Maruti Suzuki, Axis Bank, HDFC Bank, TCS, RIL and HDFC Ltd on sustained buying activity. Meanwhile, foreign funds bought a massive net Rs1,360.10 crore on Thursday, according to provisional data.
“Markets continued to move upwards for yet another session on the back of robust foreign fund inflows, powered by BJP’s huge win in UP and Uttarakhand,” said Deepak Pahwa, a Delhi-based stock broker.
Sectorally, BSE FMCG index gained a whopping 2.41%, followed by realty 0.78%, IT 0.71% and teck 0.10%.
However, broader markets depicted a mixed trend with small-cap index rising 0.04% while mid-cap index shed 0.14%. In overseas markets, key indices in Asia such as Hong Kong’s Hang Seng rose 0.09%, while Japan’s Nikkei shed 0.35%.
Shanghai Composite Index fell 0.96%. Among European markets, London’s FTSE was up 0.03% and Paris CAC 40 gained 0.29% in their early deals, but Frankfurt’s DAX shed 0.11%.