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Markets at new highs on capital inflows, pre-budget optimism

Of the Sensex, 18 scrips led by Hind Unilever, Bharti Airtel, HDFC Ltd, SBI, Coal India, Infosys, Hero MotoCorp, Sun Pharma, Bajaj Auto, L&T, Tata Power, Dr Reddy, Maruti Suzuki, TCS, ICICI Bank, BHEL, NTPC and RIL closed higher, while 12 ended in the negative zone.

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The benchmark BSE Sensex and the NSE Nifty hit their new all-time peaks of 28,958.10 and 8,741.85 respectively on sustained funds inflows amid pre-budget optimism among participants.

The 30-share index resumed higher at 28,843.09 and firmed up further to an all-time intra-day high of 28,958.10, before closing at a fresh record of 28,888.86, rising 104.19 points from its last close. The Sensex surpassed its previous peak of 28,829.29, recorded yesterday.

The gauge has now gained 1,542.04 points in the five sessions.

The Nifty touched 8,741.85 intra-day, breaking the earlier record of 8,707.90, reached in yesterday's trade.

The 50-share index ended above the 8,700 level for the first time by surging 33.90 points, or 0.39%, at new peak of 8,729.50, surpassing its previous closing high of 8,695.60 hit yesterday.

Of the Sensex, 18 scrips led by Hind Unilever, Bharti Airtel, HDFC Ltd, SBI, Coal India, Infosys, Hero MotoCorp, Sun Pharma, Bajaj Auto, L&T, Tata Power, Dr Reddy, Maruti Suzuki, TCS, ICICI Bank, BHEL, NTPC and RIL closed higher, while 12 ended in the negative zone.

Stocks of ITC Ltd plunged 5.01% to Rs 352 even after company reported an over 10% rise in its net profit at Rs 2,635 crore for the third quarter ended December 31, 2014.

Besides, positive global cues with Asian markets ending mixed and a higher opening at European markets on speculation of European Central Bank stepping up stimulus measures at its meeting on January 22 also boosted trading sentiments, equity brokers said.

"Continued foreign funds inflow since the RBI's surprise rate cut last week and encouraging Q3 earnings by some bluechip companies lifted the key benchmarks to hit new highs," said Delhi-based broker Manoj Choraria.

Interest rate-sensitive stocks have been in the limelight since the Reserve Bank of India's surprise rate cut last week raised hopes of a start of a monetary easing cycle.

The provisional data released by the stock exchanges showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1,275.59 crore yesterday.

Sectorwise, BSE Consumer Durables index gained the most by surging 1.41%, followed by Metal Teck index 1.17%, IT index 0.96%, Capital Goods index 0.87%, Bankex 0.39%, Healthcare index 0.32%, Power index 0.11% and Auto index 0.07%.

However, Midcap and smallcap indices ended in negative zone by falling 0.24% and 0.20% respectively. 

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