Sensex, Nifty hit over 1-yr high;log 6th straight monthly gain
Mumbai : Market rally continued for the third straight session today, with Sensex surging over 109 points to end at a fresh 13-month high of 28,452.17 on sustained fund inflows despite a caution ahead of the release of key macroeconomic data later in the day.
On monthly basis, in August both the key indices — Sensex and Nifty — recorded their sixth straight month of gains by rising 401.31 points, or 1.43 per cent, and 147.70 points, or 1.70 per cent, respectively. This is also the longest run of monthly advances since November 2014.
In the current fiscal (2016-17), the Sensex has so far gained 3,110.31 points, or 12.27 per cent.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 390.63 crore yesterday, as per provisional data released by the stock exchanges.
The broader NSE Nifty after recapturing the 8,800-mark after 16 months touched a high of 8,819.20 today but profit-taking dragged it down to close at 8,786.20, still up 41.85 points or 0.48 per cent.
Moreover, encouraging earnings by some more companies and a mixed trend in global markets too buoyed trading sentiment here.
Shreyash Devalkar, Fund Manager – Equities, BNP Paribas Mutual Fund, said, “Sensex and Nifty traded higher and hit their highest level in over 13 months and 16 months in intra-day trade, respectively. Domestic investor sentiment remained buoyed, despite mixed global cues and a sharp up-move in the dollar index.”
The benchmark BSE Sensex after shuttling between 28,532.25 and 28,363.10, finally ended 109.16 points, or 0.39 per cent, higher at 28,452.17 on sustained foreign fund inflows and increased buying by domestic financial institutions ahead of the GDP data for the June quarter, to be released later in the day.
This is the highest closing since July 22, 2015. The index had rallied 560.76 points in the previous two sessions.
Broader markets also continued to display firm trend as retail investors widened their exposure, with the BSE mid-cap index rising 0.37 per cent and small-cap gaining 0.18 per cent.
RBL Bank share made a spectacular debut with a nearly 22 per cent premium on the bourses today, against the issue prices of Rs 225.
Consequently, auto-maker stocks remained buyers’ fancy ahead of monthly sale numbers to be announced tomorrow. Major gainers were Hero MotoCorp with 2.13 per cent rise followed by Tata Motors 1.73 per cent.
Moreover, among banking pack, HDFC Bank, ICICI Bank, Axis Bank and SBI surged by up to 1.83 per cent.
In a major boost to the construction sector, the Union Cabinet today approved an array of measures including easing of rules for quicker settlement of disputes, pumping in liquidity and reinvigorating stalled projects.
Reacting to this, shares of Hindustan Construction Company soared 20 per cent to Rs 27.50. Out of the 30-share Sensex pack, 11 scrips ended higher.
Major gainers were L&T (2.71 pc), Asian Paint (1.09 pc), ITC Ltd (1.05 pc), HDFC Ltd (0.99 pc), Power Grid (0.52 pc), and Wipro (0.29 pc).
Among laggards, Tata Steel fell the most by 1.95 per cent, followed by ONGC 1.92 per cent, Lupin 1.71 per cent, NTPC 1.58 per cent and TCS 1.42 per cent.
Sector-wise, capital goods rose by 1.40 per cent followed by bankex 1.20 per cent, consumer durables 0.17 per cent, auto 0.35 per cent and FMCG 0.15 per cent, while metal fell by 1.40 per cent and realty 0.81 per cent.
In Asia, Japan’s Nikkei settled 0.97 per cent higher and Shanghai Composite Index rose 0.35 per cent, while indices in Hong Kong, Singapore and South Korea fell up to 0.18 per cent.
Europe was narrowly mixed with indices in Paris rising 0.40 per cent, while London’s FTSE dipping 0.11 per cent. Frankfurt’s fell 0.22 per cent in their early trade.