665.07 points Sensex has gained in the last three sessions; 183 points Nifty away from its record high
Healthy start to corporate earnings lifted benchmark indices above their recent milestones on Tuesday.
The BSE Sensex retook the 36000 mark, closing at over five-month high, while the NSE Nifty regained the 10900 mark. Along with earning hopes, sustained buying buying by domestic investors boosted sentiment.
The 30-share Sensex rose 304.90 points, or 0.85%, to close at 36239.62. It opened at 36068.27 and traded between 36,022.12 and 36,274.33. The index has gained 665.07 points in the last three sessions and is a tad lower from its all-time closing high of 36283.25 hit on January 29, 2018.
The broader Nifty rose 94.35 points or 0.87%, to close 10947.25.
Both the BSE Midcap and Smallcap climbed 1.01% and 1.04%, respectively.
"Rainfall, rise in minimum support price (MSP) of kharif crop is acting as a major trigger. The midcap and smallcap gauges have seen their share of correction. They are coming back from their lows. The rise is MSP is proving to be very positive for the economy," A K Prabhakar, head of research, IDBI Capital said. "Paint, automobile sectors have been performing very good. Maruti Suzuki is showing outstanding performance since the last few days. Fertiliser stocks may see some rally in the coming days," he said.
Except Healthcare that fell 0.14%, all the other 18 BSE sectors gained led by Energy (2.09%), Realty (1.79%), Telecom (1.75%) and Metal (1.58%). On NSE too, barring Nifty Pharma (-0.34%), all the 10 segments rose with Nifty Realty (1.80%) and Metal (1.66%) being the top gainers. Auto stocks spurted after data showed that passenger vehicle sales in India rose by 37.54% in June, the fastest monthly growth in nearly ten years.
Market heavyweight Reliance Industries topped the Sensex gainers list surging 3.02%, followed by YES Bank, Coal India, Bajaj Auto and Wipro, which rose as much as 2.58%. IndusInd Bank ended 1% lower despite a 24% rise in its net profit in Q1.
"The Nifty registered another gap up as it closed with gains of 94 points or 0.87% to close at 10947, a level not seen by the benchmark in five months. The index is now just 183 points or 1.8% from its all-time closing peak of 11130 registered on January 29, earlier this year. The only obstacle standing between the Nifty and its all-time high is Crude Oil. If crude oil does not go up we could have a new in this series itself," V K Sharma, head PCG and capital market strategy at HDFC Securities, wrote in a note.
"The upcoming corporate results will help to predict the index movement further. Right now, the rally is mainly stock specific," Prabhakar said.
Among the losers on the Sensex pack were Sun Pharma, IndusInd Bank, Kotak Bank, Hero MotoCorp and TCS falling as much as 1.24%.
Meanwhile, as per the provisional data, the foreign portfolio investors sold shares worth Rs 20.73 crore on Tuesday, while the domestic institutional investors bought shares worth Rs 293.96 crore on a net basis.
BACK TO FUTURE
- Rainfall, rise in MSP of kharif crop is acting as a major trigger
- Smallcap, midcap indices are seeing a strong return
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Both the BSE Midcap and Smallcap climbed 1.01% and 1.04%, respectively.
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