Sensex zooms 440 points to over 13-mth high; Nifty breaches psychological 8,700-level
BSE Sensex shot up over 440 points to close at an over 13-month high of 28343 as foreign investors made a beeline for Indian stocks, after a week-long lull. The broader Nifty went past the psychological 8700-level to finish at 16-month high of 8744, spurred by positive global cues.
Following the US market gained substantially in the previous day's rally, Asian and European markets saw a bull run on Tuesday.
The speculation that the government employees will get their past dues along with their salary revision and that it would in turn stoke sales of cars and home appliances helped the market on Tuesday.
RBI's bullish annual growth report, as well as a slew of financial results by companies, helped build the positive sentiment in the Indian market.
Interestingly, the strong stock market show on Tuesday has pushed up total market capitalisation (m-cap) of BSE-listed companies to an all-time high of Rs 110.7 lakh crore. PTI reported that investor wealth rose by Rs 1,39,948 crore to Rs 1,10,70,610 crore, following the sharp rally in stocks.
Key bluechips across the sectors led by auto, banks, financials, IT, capital goods, metals, consumer durables, power, real estate, healthcare and PSUs, among others, saw a jump.
Among the 30 Sensex companies, 29 stocks ended higher, led by Asian Paints and Bajaj Auto. Bharti Airtel fell 2.82%. Auto stocks were the best performers on BSE. Maruti Suzuki India Ltd. rallied to an all-time high at Rs 5,104.
Two-wheeler maker Bajaj Auto was the top gainer on BSE, while Hero MotoCorp rose for a third day to close at Rs 3,473 per share. HDFC Bank and ICICI Bank also reported more than 2% gains as investors lapped up the shares of two leading private banks.
"Renewed buying interest from FIIs helped benchmark indices to break free from the excruciating range seen all through August, and this seemed to have attracted further participation from those waiting for a clearer signal," Anand James, chief market strategist, Geojit BNP Paribas Financial Services Ltd, told PTI.
TCS is the most valued Indian firm with a market valuation of Rs 5,02,202.97 crore, followed by RIL (Rs 3,45,650.10 crore), HDFC Bank (Rs 3,22,240.25 crore), ITC (Rs 3,11,383.66 crore) and Infosys (Rs 2,39,111.94 crore).
"Market regained its strength as FIIs continue to pour into the domestic market despite a likely hike in FED rate. FII inflow has improved post a muted trend seen last week awaiting the FED chairman's speech last Friday.
Global markets continue to be positive as investors have largely factored an interest rate hike in 2016," Vinod Nair, head of research, Geojit BNP Paribas Financial Services, told PTI.
On Monday, RBI reported a near-term growth outlook for India seems brighter than last fiscal. It said the economy is likely to expand at 7.6% this year, primarily due to better monsoon.
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