Bajaj Finserv, L&T, HDFC, Axis Bank, SBI and Reliance were the top gainers in the Sensex pack. (representative image)
New Delhi: Equity indices on Thursday edged higher in realty and banking stocks with the benchmark BSE Sensex rising 950 points.
After scalping a fresh intra-day high of 59,957, the 30-share BSE index settled 958 points or 1.63 per cent higher at a new record high of 59,885. Whereas, the broader NSE Nifty ended 276 points or 1.57 per cent higher at a fresh peak of 17,823.
Bajaj Finserv, L&T, HDFC, Axis Bank, SBI and Reliance were the top gainers in the Sensex pack, rising 4.51 per cent.
While Dr Reddy’s, ITC, Nestle India and Bharti Airtel fell up to 1.09 per cent.
The Nifty Realty, Bank and Financial Services sub-index rose 8.66 per cent on the NSE platform.
Here are the top reasons behind today’s boom:
* Metals, banking, realty stocks jump
Investors took positive global market cues, metals, banking and realty stocks led the rally in the stock market.
Metal stocks rose 1.65 per cent, with Coal India topping the Nifty 50 index, as the stock jumped 3.33 per cent.
Banks carried forward losses of the previous session at 2.24 per cent, with Axis Bank rising over 3 per cent.
Real estate stocks have risen 8.66 per cent in almost 11 years, with Godrej Properties hitting a record high of 12.61 per cent.
Positive sentiment on signs of an increase in property sales is also spreading to ancillary sectors, SMC’s Purohit told news agency Reuters, adding that exposure to property mortgages to private banks also benefited.
*Federal Reserve Announcements
The US Federal Reserve’s results strengthened investor sentiment.
Federal Reserve Chairman Jerome Powell said the Fed plans to announce in early November that it will begin reducing its monthly bond purchases, should the job market continue to improve.
According to experts, domestic stocks are looking good right now. Favorable results from the FOMC meeting and a clear easing of growing concerns over a possible default from Evergrande should inevitably provide comfort to global markets.
Powell indicated that the central bank may announce the withdrawal of its asset purchase program at its November policy meeting and start raising interest rates in 2022, which was highly expected in the market.
Binod Modi, Head-Strategy, Reliance Securities, told news agency PTI, “In our view, investors can continue to take comfort from the FOMC meeting in the context that there is no final deadline yet to cut or discontinue asset purchase programmes.” Not there.”
* Evergrande will put small investors first
The apparent easing of growing concerns over a possible default by Evergrande Group also provided some comfort to the domestic markets.
China’s Evergrande Group will make it a top priority to help retail investors capitalize on its investment products, its chairman said, as uncertainty over a bond interest payment mounts to the indebted property developer due on Thursday.
The developer said it has settled coupon payments on domestic bonds, taking the company’s share price to its biggest single-day percentage increase in a year.
The company, China’s second-largest property developer, has $2 billion in offshore bond interest payments due Thursday and $47.5 million in $83.5 million dollar-bond interest payments due next week.
If Evergrande fails to settle the interest within 30 days of the scheduled payment dates, both bonds will default.
*Positive Global Signs
US stocks fell sharply in the overnight session after the Federal Reserve decided to retain its massive $120 billion monthly asset purchase program to support the economy.
Asian markets rose on concerns about the collapse of troubled asset giant Evergrande.
Hong Kong was one of the major advances as it reopened after a midweek break to catch up with news that Evergrande had agreed to a plan to pay interest back to its domestic bondholders, soothing concerns of a default that the Chinese have. There has been talk of a hammer blow to the economy.
Shanghai and Hong Kong shares ended higher on improved global sentiment, while European stocks edged higher for the third day.
(with inputs from agencies)
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