Markets log new peaks as tumbling oil price lifts rate cut hopes
Mumbai, Nov 28 (PTI) Markets gained for the third straight session today with benchmark Sensex surging 255.08 points to 28,693.99 and Nifty rising 94.05 points to 8,588.25, led by banking and auto shares, as hopes of a rate cut by RBI brightened after oil prices tumbled to multi-year lows.
FII buying in bluechips and retail investors picking up midcap shares helped markets cement gains. All eyes are now on quarterly GDP data to be released later. Total investor wealth is within a sniffing distance of Rs 100 lakh crore.
The BSE 30-share barometer Sensex spurted by 255.08 points, or 0.90 per cent, to close at new high of 28,693.99. It broke previous peak 28,499.54 recorded on November 24. Intra-day, it touched a new high of 28,822.37, bettering previous lifetime high of 28,541.96 also hit on November 24.
The Sensex has now gained over 355 points three days.
Gainers in the 30-share Sensex included Tata Steel, Tata Motors, M&M, Maruti Suzuki, Coal India, L&T, Hero MotoCorp, NTPC, Hindalco, HDFC, Wipro, ITC Ltd, Tata Power and RIL.
“Sentiments were buoyed by OPEC’s decision to sustain production levels and the subsequent sharp fall in crude prices. Markets are hoping for a rate cut in the RBI policy meeting next week,” said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
Similarly, the NSE Nifty barometer topped the 8,600 mark for the first time to hit life-time high of 8,617.00. It finally settled 94.05 points, or 1.11 per cent, higher at record close of 8,588.25. Thus, it surpassed its earlier closing peak of 8,530.15 touched on November 24.
Banking was the front-runner ahead of RBI monetary policy review next week. SBI led gains by rising over 5 per cent. Others such as ICICI Bank, Axis Bank and HDFC Bank also rose.
Globally, brent crude prices fell to trade at over four-year low of USD 71.21 per barrel in Asian trade. This boosted shares of OMCs, paint makers and airline companies.
Sectorally, BSE Banking index gained the most by rising 2.87 per cent, followed by Auto 1.95 per cent, Realty 1.65 per cent and Consumer Durables 1.16 per cent among others.
Mixed closing at other Asian markets and a lower opening in European markets also influenced trading sentiments here.
Foreign investors bought shares worth net Rs 389.73 crore yesterday, as per provisional data.