The Sensex and Nifty jumped to record closing highs for a second straight session on Monday as pre-budget cheer and optimism over corporate results offset lowered growth forecasts, with the sentiment also boosted by broader world markets hovering near all-time highs.

According to brokers, investor sentiment remained upbeat on sustained capital inflows and widespread buying by retail investors amid expectations of encouraging third quarterly earnings, to be announced this week.

The 30-share BSE index Sensex soared 198.94 points to close at a record high of 34,352.79 and the 50-share NSE index Nifty gained 64.75 points to end at a new peak of 10,623.60.

The Sensex continued its upward march to touch a new intraday record high of 34,385.67, surpassing its previous high of 34,188.85 hit on January 5. Similarly, the Nifty hit a new intra-day high of 10,631.20, smashing its previous record of 10,566.10 hit on January 5.

IT stocks led the gains with Infosys Ltd , which is due to report December-quarter results on Friday, rising 2.4 per cent.

Among BSE sectoral indices, IT index gained the most by 1.4 per cent, followed by capital goods 1.22 per cent, healthcare 1.2 per cent and realty 0.87 per cent.

Top five Sensex gainers were Coal India (+3.26%), Infosys (+2.33%), Sun Pharma (+2.28%), L&T (+1.8%) and Hero MotoCorp (+1.37%), while the major losers were Bharti Airtel (-4.43%), ONGC (-0.28%), State Bank of India (-0.18%), Tata Steel (-0.18%) and Adani Ports (-0.07%).

The rupee , meanwhile, rose to as high as 63.2450 per dollar, its strongest level since April 2015, and was last at 63.3550, compared to its close of 63.3750 on Friday.

“Market is rising in spite of all the negative news around GDP (gross domestic product) estimate cut, as this is more of a pre-budget rally, while upbeat global markets also boosted sentiment,” said R.K. Gupta, managing director at Taurus Asset Management.

GDP growth forecast

India had lowered its forecast for the current year's economic growth to 6.5 per cent on Friday from the earlier estimated 7.5 per cent, before a federal budget is released next month, as businesses were hit by the chaotic launch of new nationwide tax last July. Indications of slightly better earnings this season versus the last quarter has also added to the optimism, Gupta said.

Financials and IT stocks gained, with Infosys Ltd and ICICI Bank Ltd helping the indexes gain. Pharma stocks also advanced, with the Nifty Pharma index up as much as 2.5 per cent to a two-month high. Sun Pharmaceutical Industries Ltd was among the top gainers on the indexes. Real estate developer Sobha Ltd rose as much as 14.8 per cent to its highest in over nine years following its highest ever quarterly sales performance.

Foreign portfolio investors (FPIs) net bought shares worth Rs 581.43 crore, while domestic institutional investors (DIIs) also bought equities to the tune of Rs 243.13 crore, as per provisional data.

Asian shares

Asian shares crept toward all-time peaks on Monday after Wall Street boasted its best start to a year in over a decade, with brisk economic growth and benign inflation proving a potent cocktail for risk appetite.

MSCI's broadest index of Asia–Pacific shares outside Japan added 0.1 per cent having climbed 3.1 per cent last week, its strongest performance in six months. At 588.07, the index is within spitting distance of the record top of 591.50 hit in November 2007.

(With inputs from Agencies)

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