Stocks

Sensex ends at new high of 33,266; Nifty closes at 10,364

BL Internet Desk Chennai | Updated on January 09, 2018

PSB stocks have been on a roll on govt's Rs 2.11 lakh crore recapitalisation plan

The Sensex and Nifty ended at record closing highs on Monday, driven by gains in state-owned lenders as the government's recapitalisation plan continued to lift sentiment, while energy stocks gained on higher crude prices.

The benchmark BSE index closed higher by 108.94 points or 0.33 per cent at 33,266.16, while the broader NSE index ended up by 40.6 points or 0.39 per cent at 10,363.65.

The Sensex continued its upward march to touch a new all-time intra-day high of 33,340.17, surpassing its previous high of 33,286.51 recorded on October 27. Similarly, the broader 50-issue NSE Nifty hit a new intra-day high of 10,384.50, bettering its record of 10,366.15 hit on October 27.

However, both the indices lost some ground due to profit-booking at record levels but still ended at a new high for the fourth straight session.

Positive Asian shares, buying by domestic institutional investors and F&O rollovers to November series also aided the uptrend.

Domestic sentiment was also buoyed as CLSA has increased the weightage on India in the firm's Asia Pacific ex-Japan relative return portfolio by two percentage points. Reaffirming an overweight stance on India, Goldman Sachs has raised its Nifty target to 11,600 by the end of 2018 from 10,900 by the September 2018 it had forecast earlier.

Sectoral gainers

Barring FMCG and metal, all other BSE sectoral indices ended in the positive zone. Among them, consumer durables index was the star-performer and was up 2.39 per cent, followed by realty 2.06 per cent, oil & gas 1.1 per cent and infrastructure 1.1 per cent. On the other hand, FMCG index was down 0.42 per cent and metal 0.17 per cent.

Gainers, losers

Top five Sensex gainers were Lupin (+2.67%), ONGC (+1.69%), Bharti Airtel (+1.59%), Dr Reddy's (+1.57%) and Tata Motors (+1.34%), while the major losers were HUL (-1.71%), ITC (-1.56%), Tata Steel (-1.03%), Wipro (-0.98%) and M&M (-0.83%).

PSB stocks have been on a roll, especially since last last week, driven by the government’s mega Rs 2.11 lakh crore recapitalisation plan and encouraging quarterly earnings by more blue chip companies.

State Bank of India rose 3.6 per cent, while Punjab National Bank gained over 8 per cent on hopes that the government's capital infusion will help them clean up their balance sheets.

Sentiment was also upbeat in domestic and global energy stocks with Brent crude hitting its highest level since July 2015 after Saudi Arabia agreed to support the extension of a global oil production cut agreement.

Reliance Industries surged as much as 1.7 per cent and was the top gainer in the index.

“It's a hope rally (for state-run banks),” said Sumit Pokharna, deputy vice president, Kotak Securities.

“Money is shifting from private banks to PSU banks,” he added, referring to public sector union banks, as state-run lenders are often called in India.

Asian shares

Asian shares climbed on Monday and crude oil rose to a two-year top, while the euro loitered around a three-month low as the European Central Bank’s decision to extend its stimulus further fattened the dollar’s yield advantage.

MSCI’s broadest index of Asia–Pacific shares outside Japan added 0.2 per cent. The index is up 3.4 per cent so far this month. Japan’s Nikkei nudged 0.2 per cent higher, while Seoul shares climbed 0.7 per cent.

US stocks had settled higher on Friday. The Dow Jones Industrial Average rose 33.33 points, or 0.14 per cent, to 23,434.19, the S&P500 index gained 20.67.22 points, or 0.81 per cent, to 2,581.07 and the Nasdaq Composite added 144.49 points, or 2.20 per cent, to 6,701.26.

(With inputs from agencies)

Published on October 30, 2017

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