BHUBANESWAR: India’s stock indices ended at record highs on Friday led by consumption and capital goods shares, with benchmark indices hurdling the 37,000 barrier for the first time, while NSE Nifty too breached the historic 11,200-level.
The BSE Sensex vaulted over 352 points to wrap up a stellar week — during which it finished at fresh lifetime highs for each of the five trading sessions. Better-than-expected quarterly earnings by select index heavyweights, easing of the US and European Union trade tensions and firm foreign capital inflows ensured that investor sentiment remains skewed towards equities, brokers said.
ITC was the top gainer in the Sensex pack, surging 5.24 per cent, after it posted a 10 per cent increase in standalone net profit for the June quarter. ITC went past FMCG major Hindustan Unilever to become the country’s fourth most valued firm in terms of market valuation.
Barring the BSE IT index, all other sectoral indices ended in the green. The BSE FMCG index gained the most by rising 2.04 per cent, followed by consumer durables (2.03 per cent), metal (1.89 per cent), oil and gas (1.69 per cent), telecom (1.25 per cent) and capital goods (0.63 per cent), among others.
Opening on a firm footing, the 30-share Sensex hit a new intraday peak of 37,368.62. It finally settled at 37,336.85, up 352.21 points, or 0.95 per cent, breaching its previous closing record of 36,984.64 on Thursday.
It has taken the Sensex six months (January 23-July 27) to advance to the 37,000-level from 36,000. Meanwhile, the NSE Nifty touched a new intraday high of 11,283.40, before closing at a record 11,278.35 — a gain of 111.05 points, or 0.99 per cent. It bettered its previous record close of 11,167.30 reached in Thursday’s trade.
Foreign portfolio investors bought shares worth a net Rs 2,453.57 crore, while domestic institutional investors (DIIs) sold equities worth Rs 2,716.04 crore. “Growth and earnings outlook is showing signs of a pickup, which elevated the market to a new high. On the global front, ECB kept the key rates on hold while signs of ease in trade tensions between the US and EU added some confidence,” said Vinod Nair, Head of Research, Geojit Financial Services.
Despite the recent gains, the mid-cap index is 14 per cent away from its record high of 18,321.37 on January 9 this year. The small-cap index is 19 per cent away from its record high of 20183.45 as on January 15.
“Notably, mid-caps also participated in the rally as worst of earnings seems to be over. However, valuations remain on the higher side as compared to large-caps,” Nair added.