MUMBAI: India’s benchmark indices hit a record high on Tuesday; the immediate triggers were the near normal monsoon prediction by the Meteorological Department and the possibility of future rate cuts by the central bank, taking a cue from the recent inflation and industrial growth data.
BSE Sensex hit an all-time high of 39,364.34 during the day’s trade before closing at a record 39.275.64; up 370 points or close to a per cent. NSE Nifty too had a record close at 11,787.15, up 97 points or 0.83 per cent gain after the day’s high of 11,810.95. Financials led by the private sector banks were at the forefront of Sensex gains — IndusInd, ICICI both had close to 4 per cent gains and from the auto segment, Maruti, Hero and M&M rallied too.
“The banks continue to have a lion’s share in the ongoing rally and the onus to lead the earnings for Nifty will lie with the corporate banks. With two good primary market listings in two days and upbeat mood, all eyes are now set on the ongoing fourth quarter earnings season,” said Devang Mehta of Centrum Wealth Management. Two index heavyweights, Reliance and HDFC Bank, are yet to announce their fourth quarter earnings this week.
“A close above 11,760 for one-to-two sessions more would convince fence-sitters to jump in,” sad Deepak Jasani, HDFC Securities.
Jet Airways stock crashed 18 per cent intraday as speculation that the board has recommended halting operations hit the market, and the stock finally closed at 241.85, down 7.6 per cent. Jet’s fall has been the rivals’ gain — SpiceJet rose 11 per cent intraday on new Bombardier orders and IndiGo 7 per cent.
IPOs have also become a part of the bullish story as far as equities are concerned. Two recent issues, Metropolis and Polycab, had oversubscriptions as well as good listings. Monday’s Metropolis listing saw the stock gain 9 per cent on listing and continued to do good volumes and clocked 2.5 per cent rise on Tuesday to Rs 983.85. Polycab listed on Tuesday at 18 per cent premium and closed the day on BSE at Rs 655, gain of 21.75 per cent from the issue price.