MUMBAI: Indian markets seem to have broken into a run with benchmark indices BSE Sensex and NSE Nifty 50 surging to fresh record highs Thursday. The rally was led by banking stocks from the front, buoyed by RBI’s decision to transfer its surplus Rs 50,000 crore cash to the government.
While Sensex closed higher by 136.81 points at 38,024.37, Nifty 50 rose 21.60 points to close at 11,471.60. In intraday trade, Sensex rose 188.67 points to touch an all-time high of 38,076.23. Not one to be left behind, Nifty 50 too rose 45.2 points to clock a fresh record of 11,495.20.
In particular, financial stocks outperformed everyone else, with shares of large banks including SBI rising 2.3 per cent, that of ICICI Bank 5 per cent and of PNB 3 per cent. Keeping up with the trend, Nifty’s banking index was up over 1 per cent, while the PSU bank index rose about 3 per cent.
“It was a positive day on the bourses as key indices held firm at higher levels buoyed by strength in select banking stocks. On the sectoral front, the PSU banking index witnessed sharp gains of nearly 3 per cent,” said Abhijeet Dey, senior fund manager-equities, BNP Paribas Mutual Fund.
Among the sectoral indices on BSE, realty, bankex, metal, power and finance led gains, while telecom, consumer durables, healthcare and capital goods declined. ICICI Bank, Axis Bank, SBI, NTPC and Vedanta were among the top gainers, whereas Bharti Airtel, ONGC, Titan, Kotak Bank and Cipla were among the major losers.
However, the 10-year benchmark bond yield fell 3 bps to 7.75 per cent from its previous close on higher dividend transfer and lower global crude prices, which held losses near a seven-week low on China’s determined but measured response to US administration’s rising tariff war.
Asian shares too rallied led by Chinese stocks, while Russia’s rouble tumbled as the US slapped fresh sanctions on the country. Shanghai blue chip surged 2.7 per cent amid likely government support for domestic tech firms. Japan’s Nikkei slipped 0.2 per cent, weighed in part by a shock slump in core machinery orders. In contrast, European shares slid while US futures inched higher following a positive session in Asia.
