MUMBAI: Benchmark indices Sensex and Nifty hit a fresh all-time high on Thursday after three sessions of decline. The rally was led by a rebound in bank stocks, hints from the US Fed on rate hikes, while broad dollar weakness shored up the rupee.
While the broader Nifty got past the key 9,500-mark, Sensex closed at 30,750, breaking its previous record of 30,712.35, recorded on May 19. The 448 points jump on Thursday is its biggest single-day gain in over two months.
“An indication of a gradual rate hike in the FOMC minutes gave impetus to the global indices, which instilled energy in the domestic markets. Decline in VIX also bolstered sentiments. Banks’ swing higher was solid, as traders cut short positions with expectations rising on NPA resolution measures shortly.
Consumer goods and agro based sectors have also started to show strength which is expected to continue, taking cues from IMD’s report on early monsoon,” said Anand James, Chief Market Strategist, Geojit Financial Services.
Among sectors, private banks in focus with Nifty Bank and Nifty Private Sector Bank indices hit record highs led by ICICI, HDFC, YES Bank and IndusInd Bank.