Late buying takes indices to another record level

Mumbai Extending winning momentum to the sixth day, equity benchmarks Sensex and Nifty scaled fresh record high levels on Thursday, driven by unabated foreign capital inflows and intense buying in banking and FMCG stocks. A recovery in the rupee added to the momentum, forex traders said. The 30-share BSE Sensex jumped 474.46 points or 0.71 per cent to settle at its fresh all-time closing high of 67,571.90. The benchmark recovered all its early lost ground during the afternoon trade. During the day, it rallied 521.73 points or 0.77 per cent to hit its lifetime intra-day peak of 67,619.17. The NSE Nifty is on the verge of breaching the psychologically crucial 20,000 mark and closed a few points shy of the level. Rising for the sixth straight session, the NSE flagship climbed 146 points or 0.74 per cent to end at its record closing high of 19,979.15. During the session, it soared 158.7 points or 0.80 per cent to reach its fresh record high of 19,991.85. In the last six sessions, the BSE benchmark has jumped 2,178 points or 3.33 per cent, and the Nifty rallied 594.85 points or 3.06 per cent.

“Unlocking of value by heavyweights (like RIL & ITC) is apprising the main indices. The anticipation of good Q1 results from Banks, is providing an extra boost to drive to new highs. Mixed cues from global peers are not disturbing the mood of the domestic market as FIIs inflows stay put to the prospects of the Indian economy,” said Vinod Nair, Head of Research at Geojit Financial Services. “Market sentiment remains upbeat on robust foreign flows and a healthy macroeconomic outlook. Expectations of the end of the monetary tightening cycle in the US after the July policy meeting are also contributing towards higher foreign flows into the Indian bourse.

The major US indices continue rallying behind an earnings season that has brought stronger-than-expected results so far,” said Devarsh Vakil, Deputy Head - Retail Research, HDFC Securities.