Positive European cues ahead of a possible European Central Bank (ECB) stimulus and bullish investor sentiment on hopes of further reforms in the upcoming budget, propelled the Indian equities market to close at a record high of 28,784.67 points - up 1.85 percent - in Tuesday's intra-day trade.The barometer index of the Indian equities market closed the day's trade up 522.66 points or 1.85 percent at 28,784.67 points. The S&P Bombay Stock Exchange (BSE) touched a new record high of 28,829.29 points and a low of 28,324.85 points during the intra-day trade.The 30-scrip Sensitive Index (Sensex) had closed at 28,262.01 points on Monday.
"It’s a surprise rally in spite of important global events slated to happen this week. All EM’s (emerging markets) have rallied higher expecting further QE from ECB, which will strengthen their economy and stabilise commodity prices," said Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services."Given the strong rally in the last few trading days we suggest to be cautious in the near term as actual decision are taken and digested (ECB meet, Greece vote). It’s true that as global concerns are handled, India can look ahead for new reforms and budget expectation."Market analysts pointed that better than estimated GDP (gross domestic product) data from China and the IMF's (International Monetary Fund) comments on India's growth further boosted the investors' confidence.
"Markets continued the good run and closed at a fresh high on the back of positive sentiments emanating from the RBI rate cut, expectations of further reforms from the government,” said Dipen Shah, head- private client group research, Kotak Securities.Healthy buying was observed in banking, metal, fast moving consumer goods (FMCG), automobile and oil and gas sectors. However, consumer goods and power index came under marginal selling pressure.The S&P BSE banking index was up 409.99 points, metal index was higher by 305.94 points, FMCG index rose 137.08 points, automobile index gained 136.84 points and poil and gas index increased by 130.68 points.The S&P BSE consumer durables index was down 6.88 points and power index was lower by 0.36 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) too reached a new record high of 8,707.90 points in the intra-day trade. It closed the day's trade up 1.69 percent or 144.90 points at 8,695.60 points.The major Sensex gainers were HDFC, up 5.84 percent at Rs.1,250.50; Seas Sterlite, up 5.36 percent at Rs.203.50; Tata Steel, up 4.50 percent at Rs.402.10, Axis Bank, up 4.33 percent at Rs.551.55 and Tata Motors, up 3.78 percent at Rs.559.10.The losers were Gail, down 1.90 percent at Rs.432.05, Tata Power, down 0.91 percent at Rs.82.05, Maruti Suzuki, down 0.65 percent at Rs.3,602.90, Hero MotoCorp, down 0.49 percent at Rs.2,827.70 and Mahindra and Mahindra (M&M), down 0.45 percent at Rs.1,326.20.