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The BSE index Sensex zoomed over 387 points to close at a fresh life-time high of 33,600, while the NSE index Nifty topped the 10,450-mark for the first time as India jumped up 30 notches into the top 100 rankings on the World Bank’s ‘ease of doing business’ index.
“The significant jump this year is a result of the Indian government’s consistent efforts over the past few years and India’s endeavour to strengthen its position as a preferred place to do business,” Annette Dixon, Vice President, South Asia region at the release of ‘Doing Business 2018: Reforming to Create Jobs’ had said on Tuesday.
Domestic sentiment was also buoyed as the eight core industries grew 5.2 per cent in September this year led by a sharp expansion in coal and refinery production. The last time core sector growth peaked was in March 2017, when it expanded by a similar 5.2 per cent.
Better-than-estimated earnings by some more companies too bolstered the trading sentiment.
The Sensex settled at a new closing peak of 33,600.27, up 387.14 points, or 1.17 per cent. The index had surpassed its previous closing record of 33,266.16, touched on October 30.
Yesterday, the gauge had retreated from record by losing 53.03 points.
Similarly, the Nifty breached the 10,450-mark for the first time to hit a new intra-day peak at 10,451.65, bettering its record of 10,384.50 hit on October 30. However, profit-taking at record levels erased the gains and it finally settled at 10,440.50.
Among BSE sectoral indices, realty index was the star-performer and was up 2.93 per cent, followed by banking 2.01 per cent, metal 1.89 per cent and FMCG 1.33 per cent. On the other hand, consumer durables index was down 0.61 per cent, followed by auto 0.2 per cent, healthcare 0.16 per cent and power 0.08 per cent.
Top five Sensex gainers were Bharti Airtel (+8.19%), State Bank of India (+4.58%), ICICI Bank (+4.42%), HDFC (+2.58%) and Axis Bank (+2.05%), while the major losers were Dr Reddy's (-2.9%), PowerGrid (-1.06%), Hero MotoCorp (-0.99%), Sun Pharma (-0.89%) and Bajaj Auto (-0.6%).
FDI inflows
The World Bank's ranking has raised hopes of continued foreign direct investment inflows into the country.
“It's a combination of liquidity, global markets plus the ease of business report which is playing out,” said Gautam Duggad, head of research - institutional equities, Motilal Oswal.
Asian shares looked set to extend their gains into a fourth straight day on Wednesday on the back of solid economic growth, while oil prices were on a bull run on hopes of an extension of output cuts by major oil producers.
MSCI’s broadest index of Asia–Pacific shares outside Japan rose 0.3 per cent in early trade while Japan’s Nikkei gained 1.0 per cent.
Wall Street’s three major indexes ticked up on Tuesday to end October with their biggest monthly gains since February.
(With inputs from Agencies)
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