Sensex at new high, Nifty hits 11,750; RIL, HDFC lead the charge
Metal, auto and IT stocks led the gainers today. At day’s high, the Sensex rose over 244 points while Nifty hit 11,760.
New Delhi: Indian stock markets extended record run today, with Sensex and Nifty both scaling new peaks. At day’s high, the Sensex gained over 244 points to touch 38,938 while the Nifty50 index hit 11,760 amid higher global markets. Market heavyweight Reliance Industries or RIL led the charge, with shares rising 2% to Rs 1,318.20. Metals, IT and auto stocks led the gains today. The NSE metal index surged 1.8% amid a rebound in global commodity prices. Vedanta, Adani Ports, Maruti Suzuki, Axis Bank, Tata Steel and HDFC rose between 1% and 2%.
The Sensex settled 202 points higher at 38,896.63 while Nifty ended at 11,738.50, up 46 points. The broader markets however underperformed with BSE midcap index falling 0.35%.
The NSE index, Nifty50, has had a record-setting run in the last two months, while the BSE has been Asia’s top performing index this year. The new highs come as companies in India, the fastest growing major economy in the world, reported a 11.6% annual increase in profits for the June 2018 quarter, the strongest growth in five quarters.
The rupee was trading flat at 70.15 against the US dollar in late trade, as compared to Monday’s close of 70.16.
“Majority of the macro factors are in favour, the results that came out this quarter were in line with expectations. The likes of IT and Pharma are doing well now, thanks to the dollar,” said Sudhakar Pattabiraman, Head of Research Operations, William O’Neil India.
Asian shares advanced today amid hopes global tariff tensions were abating as the US and Mexico made a deal to overhaul the North American Free Trade Agreement (NAFTA). Most of the European markets were higher today.
Investors expect Canada too would agree to the new terms to preserve a three-nation pact, ultimately dispelling the economic uncertainty caused by US President Donald Trump’s repeated threats to ditch the 1994 NAFTA accord.
“The trade war is easing out, that should be helping the energy and IT stocks. It is further expected that dollar might get even better, that is going to help the IT companies for sure,” Pattabiraman added.
Investors will keep an eye on US economic data with consumer confidence figures due later in the day and the latest estimate for second-quarter gross domestic product expected on Wednesday.
Global commodity markets showed signs of optimism in global economic growth prospects. Copper, a favoured indicator of industrial momentum, held near a two-week high of $6,112.00 a tonne.
With Agency Inputs
- Draft Brexit deal ends UK’s easy access to EU financial markets
- US markets: S&P 500 falls for 5th day, Dow Jones, Nasdaq end lower
- Satoshi vs. Bitcoin Jesus: Bitcoin Cash battle turns personal
- Nalco announces Rs505 crore share buyback
- ICICI Bank hikes FD rates. How these compare with HDFC Bank, SBI FD rates