Boosted by positive global cues, along with expectations of healthy quarterly results and intense buying activities witnessed in metal, banking and automobile stocks, the Indian equity markets on Wednesday surged to a record high, with the benchmark index NSE Nifty50 closing firmly above the 10,000-point mark for the first time.
On Tuesday, the wider Nifty50 of the National Stock Exchange (NSE) climbed the 10,000-point peak for the first time in its almost 22-year history, but soon ceded its gains to close on a flat note on the back of profit booking and expensive valuations, after touching an intra-day high of 10,011.30 points.
However, the key index surpassed even that level and scaled a record intra-day high of 10,025.95 points on Wednesday before closing at 10,020.65 points.
The other benchmark index — BSE Sensex — too, touched a fresh high of 32,413.63 points intra-day.
According to market observers, some cautiousness prevailed in the global markets ahead of the outcome of the two-day US Federal Open Market Committee meet later in the evening.
At closing time, the NSE Nifty50 rose by 56.10 points or 0.56 per cent to close at a new high of 10,020.65 points.
The 30-scrip Sensitive Index (Sensex) closed at a fresh high of 32,382.46 points — up 154.19 points or 0.48 per cent — from its previous close at 32,228.27 points.
The BSE market breadth was, however, slightly bearish with 1,365 declines and 1,324 advances.
In terms of the broader markets, the BSE mid-cap index rose by 0.18 per cent and the small-cap index by 0.28 per cent.
“Markets rallied to new life highs on Wednesday with the Nifty closing above the 10,000-level for the first time. The main indices opened the session with small gains amid initial volatility, which later hovered in green with small-to-modest gains. They extended intra-day gains towards late trade to hit fresh record highs,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.
“Globally, investors awaited the outcome of a two-day US Federal Reserve’s policy meeting scheduled later today (July 26). Markets will be watching for any signals about another possible rise in the benchmark lending rate in 2017, and on when the Fed will begin winding down its multi-trillion-dollar investment holdings,” Desai added.
On the currency front, the rupee strengthened by 2-3 paise to 64.36 to a US dollar from its previous close at 64.38-39.
In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 60.60 crore, while domestic institutional investors (DIIs) purchased stocks worth Rs 676.61 crore.
According to Dhruv Desai, Director and Chief Operating Officer of Tradebulls, the benchmark index Nifty reclaimed the 10,000-milestone led mainly by gains in metal stocks.
“Expectations of a better earnings season with improving economic indicators have increased investor confidence, extending a record-setting rally this year, although high valuations are seen capping gains in the near term,” Desai told IANS.
“The Nifty has hit a string of record highs this year and is Asia’s third best-performing index this year with a 22 per cent gain.”
Sector-wise, the S&P BSE metal index rose by 213.57 points, the banking index by 204.83 points, and the capital goods index by 156.48 points.
On the other hand, the S&P BSE Teck index slipped by 22.11 points, the IT index by 20.68 points and the telecom index by 5.79 points.
Major Sensex gainers on Wednesday were: Tata Steel, up 2.22 per cent at Rs 565.40; Sun Pharma, up 2.08 per cent at Rs 578.45; ICICI Bank, up 2.07 per cent at Rs 310.20; Mahindra and Mahindra, up 1.94 per cent at Rs 1,417; and Cipla, up 1.82 per cent at Rs 574.80.
Major Sensex losers were: Axis Bank, down 2.90 per cent at Rs 528.85; Asian Paints, down 1.43 per cent at Rs 1,135.50; Tata Consultancy Services, down 0.62 per cent at Rs 2,554.80; Bharti Airtel, down 0.32 per cent at Rs 426.25; and Bajaj Auto, down 0.24 per cent at Rs 2,838.