Sensex, Nifty close record high, rise over 1%, banking stocks gain
Mumbai: Markets cheered India leapfrogging on the World Bank’s Ease of Doing Business rankings as the Nifty closed above 10,400 for the first time and the Sensex shot up 387 points to a record on Wednesday. India improved its rank considerably as it went up 30 notches to the 100th place in the World Bank report, which was released on Tuesday.
Eight core sectors provided more tailwind, which grew at a six-month high of 5.2% in September. Positive leads from global markets came as a catalyst. That apart, better-than-estimated earnings by some more companies kept the risk-on sentiment alive.
The broader 50-issue Nifty breached the 10,450-level intra-day for the first time. It closed at 10,440.50, a fresh life high, up 105.20 points or 1.02%, dismantling its previous record of 10,363.65 reached on 30 October. The Sensex hit a new all-time intra-day high of 33,651.52, but it gave in to some profit taking activity and settled at a new closing peak of 33,600.27, up 387.14 points, or 1.17%. In the process, the barometer went past its previous closing record of 33,266.16, touched on 30 October.
“India’s historic climb on World Bank’s ‘Ease of Doing Business’ rankings and buoyancy in global peers provided tailwind to the domestic indices... Strength in the rupee also amplified the sharp surge supported by strong sentiment being played around PSU banks, realty, metal and FMCG sectors,” said Anand James, chief market strategist, Geojit Financial Services.
“While soft PMI numbers have not dulled the sentiment as yet, activities of FIIs and the dollar’s trajectory would be in focus with US tax reforms on the horizon,” he added.
The steep rally led to a big jump in investor wealth measured in terms of market capitalisation of BSE listed companies, which stood at Rs145 trillion, up by Rs1.08 trillion. Reflecting the market’s aggressive form, most sectoral indices ended in the green. Much of the charge came from buying in banking, realty, metal, FMCG and PSU counters.
Traders said uninterrupted funds inflows into equities was at work too. Bharti Airtel led the gainers’ pack, jumping over 8%, even as the company logged a drop in earnings for July- September. SBI, ICICI Bank, HDFC Ltd and Axis Bank lent a hand, rising by up to 4.58%.
Asian and European markets saw a firming trend ahead of the US Federal Reserve decision on interest rate hike. DIIs dug in by purchasing shares to the tune of Rs596.92 crore. But foreign portfolio investors turned their back net selling shares worth Rs531.82 crore on Tuesday, as per provisional data.
In sectoral play, telecom rallied the most by surging 3.93%, followed by realty, bank and metal. Broader markets ruled high too, with the small-cap index rising 0.55% and mid-cap 0.35%.