BSE Sensex touched an intra-day high of 39364.34 before closing at 39275.64, about 369.80 points, or 0.95%, higher than the previous close
After the key equity benchmark indices touched record highs, the markets are expecting this momentum to continue till the outcome of general elections.
On Tuesday, both S&P BSE Sensex and NSE Nifty 50 touched record highs, led by positive start to the fourth quarter earnings season and foreign institutional investors investing in Indian markets after the US Federal Reserve changed its stance to dovish and accommodative stance. The India Meteorological Department forecast of a near-normal monsoon also gave a fillip to the market sentiments as it raised expectations of higher farm income.
BSE Sensex touched an intra-day high of 39364.34 before closing at 39275.64, about 369.80 points, or 0.95%, higher than the previous close, while NSE Nifty rose to 11810.95 intra-day before ending at 11787.15, up 96.80 points, or 0.83%, over the previous close. This is the fourth straight session of gains.
The gains were led by banking stocks as investors remained upbeat over earnings growth and outcome of general elections 2019.
Subodh Shinkar, chief executive officer, JM Financial Services, said that markets are seeing new highs as investors are bullish on expectation of a stable government to be formed at the Centre.
Foreign institutional investors, or FIIs, purchased equity worth Rs 1,038.58 crore, and domestic institutional investors (DIIs) bought equities to the tune of Rs 37.22 crore, as per provisional data with stock exchanges on Tuesday.
The market breadth was tilted in favour of buyers. About 1,277 stocks advanced and 1,298 shares declined with 149 shares remained unchanged on the BSE.
Out of the 30-stock Sensex, 27 stocks ended in green with IndusInd Bank, ICICI Bank, ONGC, L&T, Maruti and Asian Paints being the top gainers, gaining between 1.64% and 3.96%. PowerGrid, Infosys and Tata Motors were the losers, shedding between 0.22% and 0.63%.
Out of 12 sectoral gauges compiled by the NSE, eight ended higher led by NSE Nifty Private Bank Index, which ended with 1.69% gains, while Nifty Bank Index ended 1.42% higher. On the other hand, Nifty IT, Nifty PSU Bank and Nifty witnessed profit booking, while Nifty Pharma remained unchanged.
Sameet Chavan, chief analyst-technical and derivatives, Angel Broking, said, "With today's bump up, Nifty has confirmed yet another breakout and hence, we expect this momentum to continue. Since we have entered an uncharted territory, fresh high from here on would just be a number now."
According to him, the market has come out of its recent slumber, and despite subdued global cues has managed to open with a decent upside gap. In the initial hour, Nifty clocked fresh record highs and then went on to reach yet another milestone of 11800, though due to minor profit booking towards the end, Nifty eventually closed with over eight tenths of a percent.
Most European markets were modestly higher on Tuesday and the pound held steady after official data showed the UK unemployment held at a 44-year low of 3.9% in February, versus analyst consensus of 4%.
Asian markets also advanced on Tuesday as the US and Japan kicked off their first round of trade talks in Washington aimed at creating a bilateral trade framework, Standard Chartered Securities said in its report. New home prices in China grew slightly faster in March, with investors now turning their attention to Chinese GDP data due on Wednesday for directional cues.
Deepak Jasani, head of retail research, HDFC Securities said Nifty and Sensex touched new all-time highs and closed at an all-time high on Tuesday as global markets remained supportive. Volumes were about 20% higher than recent average. A close above 11760 for Nifty for 1-2 sessions more would convince fence sitters to jump in. Rupee, however, weakened 0.4% despite a buoyant equity market.
Vinod Nair, head of research, Geojit Financial Services said the market rallied to a new high supported by optimism over quarter earnings and positive global market. A better monsoon outlook from IMD provided relief to investors, who are keen on earnings outcome to accumulate quality stocks despite election led volatility.
BULL ELECTION
- 96.80 points – NSE Nifty rose on Tuesday to touch 11787
- 1,277 stocks – Advanced and 1,298 shares declined with 149 shares remained unchanged
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The gains were led by banking stocks as investors remained upbeat over earnings growth and outcome of general elections 2019.
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