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The key equity index BSE Sensex on Thursday touched the 38,000 mark for the first time ever. The broader index Nifty too ended at a fresh lifetime high on fenetic buying on improved investor sentiment.
Ever since February, when the indices saw a correction, of about 10 per cent, the stock market has been on a consistent uptrend even amidst trade tensions between the US and China.
Bank stocks top
On Thursday, ICICI Bank was the top gainer in the Sensex pack, surging 4.64 per cent, followed by Axis Bank at 3.86 per cent and SBI 2.53 per cent. The 30-share Sensex rose 136 points, or 0.36 per cent, to close at 38,024.
Surging Sensex
The Sensex took just 11 sessions to race to 38,000 from the 37,000 level reached on July 26. The Nifty index rose 20.70 points or 0.18 per cent to close at 11,470.
Brokers say investor sentiment lifted on news of foreign and domestic fund flows amid strong corporate earnings.
“Green shoots in earnings and growth prospects of the domestic economy overrode global headwinds caused by trade tensions,” said Vinod Nair, Head of Research, Geojit Financial Services.
“On the other hand, oil price hovering near the recent low and increasing exposure of foreign funds in domestic equity, bodes well for the market direction. Investors are also focussed on tomorrow’s IIP data, with a positive consensus of 5.6 per cent growth,” he added.
Buying spree
On a net basis, foreign portfolio investors bought shares worth ₹568.63 crore and domestic institutional investors (DIIs) bought equities to the tune of ₹30.25 crore on Wednesday.
“Immediate support for the Nifty is seen at 11350 while Resistance is placed around 10600 levels,” said VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities.
“We expect mid-caps and small-caps to do well during the fag end of the earnings season,” he added.
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