Sensex tops 37K; Nifty crosses 11,200-mark
mumbai — Indian stock market zoomed over 352 points on Friday to close above the 37,000mark for the first time, while the broader National Stock Exchange Nifty too breached the historic 11,200-level on widespread buying led by consumption and capital goods sectors.
Better-than-expected quarterly earnings by select index heavyweights, easing of US-EU trade tensions and firm foreign capital inflows boosted investor sentiment, brokers said.
Continuing its record-setting run for the fifth straight session, the 30-share the Bombay Stock Exchange Sensex hit a new high of 37,368.62 (intra-day) on the back of gains in FMCG, consumer durables, metal, oil and gas, telecom and banking counters.
It finally settled at 37,336.85, up 352.21 points, or 0.0.95 per cent — breaching its previous closing record of 36,984.64 reached yesterday.
The BSE benchmark advanced to the 37,000-level from 36,000 in six months (January 23 to July 27).
The Sensex has rallied 5.4 per cent in July, its best monthly performance since April, as the earnings confidence dampened the anxiety about the global trade conflicts and the Reserve Bank of India’s policy review on Wednesday.
Meanwhile, the NSE Nifty touched a new intra-day high of 11,283.40, before closing at a record 11,278.35 — showing 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.
Net profit at 13 of the 21 NSE Nifty 50 Index firms that have reported have met or beaten estimates, data compiled by Bloomberg show.
“Earnings season moving along positive lines is generating higher buying interest,” said Deven Choksey, managing director at KR Choksey Shares & Securities Pvt. “Earnings would continue to get priority even amid central bank’s review next week. It is widely known that rates would have to rise slowly.”
The RBI, which raised rates in June for the first time since 2014, is set to review policy on August 1. Eighteen out of 24 economists expect it to hike rates while the rest expect a hold, according to a Bloomberg survey of economists.
ITC was the top gainer in the Sensex pack, surging 5.24 per cent to Rs302.20, after it posted a 10 per cent increase in standalone net profit at Rs28.18 billion for the June quarter.
Foreign portfolio investors (FPIs) bought shares worth a net Rs24.53 billion, while domestic institutional investors (DIIs) sold equities worth Rs27.16 billion on Thursday, provisional data showed.
The Sensex has advanced about 10 per cent this year, holding its place as Asia Pacific’s best performing market.