Benchmark indices race to fresh highs on global cues
Market benchmarks closed at new peaks today on account of widespread buying in banking, power and metal stocks, tracking positive global cues as investors welcomed US Federal Reserve's "gradual approach" to raising rates.
Market benchmarks closed at new peaks today on account of widespread buying in banking, power and metal stocks, tracking positive global cues as investors welcomed US Federal Reserve's "gradual approach" to raising rates. The BSE Sensex surged over 442 points to close at its life-time high of 38,694.11 and the broader NSE Nifty ended at a fresh record of 11,691.95, rising 134.85 points.
Both the benchmarks Sensex and Nifty recorded their biggest single-day gains of 442.35 and 134.85 points, respectively, in nearly five months. On April 5 this year, the 30-share Sensex had rallied 577.73 points and the Nifty 50 had jumped 196.75 points.
Last week, US Federal Reserve Chairman Jerome Powell had said that a "gradual approach" to interest rate hikes would be in the best interest of the US economy and jobs generation, helping Wall Street boost sentiment at the week's close.
Asian shares too ended higher and European markets were firm in their early deals, tracking Friday's gain on the US markets, brokers said.
Global markets also reacted positively to the People's Bank of China announcement that it was tweaking its methodology for the fixing of the yuan's daily midpoint as part of efforts to stabilise the currency market.
Sentiment also got a boost on unabated buying by domestic institutional investors (DIIs) and fresh foreign fund inflows, giving push to the market uptrend.
Buying momentum was so strong that all the sectoral indices, except realty, ended in the positive terrain.
The 30-share Sensex, after opening on a strong footing, continued its upward march to scale an all-time high of 38,736.88, breaking its previous (intra-day) record of 38,487.63 hit on August 23.
It lost some ground on profit-booking and finally ended 442.31 points, or 1.16 per cent, higher at 38,694.11, going past its previous record close of 38,336.76 reached on August 23.
The gauge had lost 84.96 points in previous session on Friday.
The NSE Nifty too breached the 11,700-mark for the first time to touch a new high of 11,700.95 before concluding 134.85 points, or 1.17 per cent, higher at 11,691.95.
The gauge bettered its previous intra-day peak of 11,620.70 and closing high of 11,582.75, marked on August 23.
Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 904.75 crore on Friday, while foreign portfolio investors (FPIs) sold shares worth a net of Rs 75.78 crore, provisional exchange data showed.