Bajaj Finserv tops the Sensex gainers chart.
The BSE Sensex jumped 958 points to hit a new lifetime high on Thursday amid a positive trend in global equities despite sharp comments from the US Fed.
Traders said a firming rupee supported the sentiment further.
Reversing the sluggishness of the previous session, the 30-share BSE Sensex jumped 958.03 points or 1.63% to close at an all-time high of 59,885.36. It touched a new peak of 59,957.25 during the day.
Similarly, the broader NSE Nifty rose 276.30 points or 1.57% to its new closing level of 17,822.95 after touching an intra-day record of 17,843.90.
Bajaj Finserv was the top gainer in the Sensex gainers chart, rising 5.15 per cent, followed by L&T, HDFC, Axis Bank, SBI, Reliance Industries (RIL) and IndusInd Bank.
Index heavyweights RIL and HDFC twins accounted for nearly half of the benchmark’s gains.
Only five counters closed in the red – Dr Reddy’s, ITC, Nestle India, HUL and Bharti Airtel, slipping up to 1.07%.
“Amid a strong opening, bulls showed no signs of weakness, fueled by firmer global cues and broad-based buying led by realty, metals and banking stocks. Global markets eased optimism despite a slightly sharper downtrend by the Fed Reserve. The US central bank will begin reducing its asset purchases in November and will end the taping process around mid-2022.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Investors, however, remain on edge waiting for clarity on the Chinese economy. The domestic realty sector continued its rally owing to the revival of demand in the property sector.”
Devang Mehta, Head-Equity Advisory, Centrum Broking, said markets started diluting the US Fed’s statement as early as November.
“…Today’s rally was a symbol of the strong sentiment prevailing locally on the back of reduction in COVID cases and strong vaccination numbers. With improving economic activity and optimism around capex cycle revival, the earnings trajectory for India Inc. will naturally gets a big boost.
“Most companies that are market leaders in their respective domains have seen improvements in operational efficiencies and productivity as well as have been able to reduce debt with major gains in market share. Liquidity remains extremely strong, regardless of foreign portfolio. Be it investors, local mutual funds, insurance companies, family offices, HNIs or even retail investors.”
Sector-wise, BSE Realty, Bankex, Energy, Finance, Capital Goods and Industrial indices rose up to 8.71 per cent, while FMCG closed in the red.
The broader BSE Midcap and Smallcap gauges followed the benchmark, rising up to 1.28%.
US Federal Reserve Chairman Jerome Powell said the central bank would begin reducing its asset purchases in early November, and world stocks maintained their upward trajectory even after indicating a rate hike from next year.
Investors also kept an eye on the Evergrande debt crisis in China, with the real estate major set to make bond interest payments later on Thursday.
In Asia, shares ended higher in Shanghai and Hong Kong, while Seoul was in the red. The Japanese market was closed for the holidays.
European stock exchanges were also in positive territory in afternoon trade.
Meanwhile, international oil benchmark Brent crude slipped 0.12% to $76.10 a barrel.
The rupee edged higher by 23 paise at 73.64 (provisional) against the US dollar.
Foreign institutional investors were net sellers in the capital markets on Wednesday as they sold shares worth 1,943.26 crore, according to exchange data.
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