MUMBAI, June 16 (PTI): Equity benchmark indices Sensex and Nifty closed at
fresh lifetime highs on Friday following gains in banking, financial and capital
goods stocks amid a firm trend in the global market.
A strengthening rupee and foreign capital inflows further bolstered sentiment,
traders said.
The 30-share BSE index zoomed 466.95 points or 0.74 per cent to settle at a
record closing high of 63,384.58. During the day, it rallied 602.73 points or 0.95
per cent to 63,520.36.
The index scaled its earlier lifetime high of 63,284.19 on December 1 last year.
The NSE Nifty climbed 137.90 points or 0.74 per cent to end at its lifetime peak of
18,826. Its previous record peak was 18,812.50.
On a weekly basis, the BSE benchmark jumped 758.95 points or 1.21 per cent, and
the Nifty climbed 262.6 points or 1.41 per cent.
“Markets surged strongly on Friday and inched closer to the record high, tracking
firm global cues. After the firm start, the Nifty index hovered in a narrow band in
the first half. However, a sharp surge in the latter half helped the index to test
18,864.70 but it finally settled at 18,826 levels.
“Recovery in banking and financials combined with buying in FMCG, pharma and
energy majors largely aided the rebound. Besides, the continued buying in midcap
and smallcap space further added to the positivity,” Ajit Mishra, SVP – Technical
Research, Religare Broking Ltd, said.
The buoyancy in the global markets, especially the US, is helping the index to
maintain a bullish tone amid mixed domestic cues, Mishra added.
Buying in index major Reliance Industries and HDFC twins also helped the markets
to rebound.
Bajaj Finserv was the biggest gainer in the Sensex pack, rising 2.21 per cent,
followed by Titan, ITC, Kotak Mahindra Bank, HDFC Bank, HDFC, Bajaj Finance,
IndusInd Bank, ICICI Bank, HUL, Reliance Industries and Mahindra & Mahindra.
Wipro, Tata Consultancy Services, Power Grid and Tech Mahindra were the
laggards.
In the broader market, the BSE smallcap gauge climbed 0.76 per cent and the
midcap index jumped 0.71 per cent.
Among the indices, financial services climbed 1.21 per cent, bankex jumped 1.03
per cent, capital goods (1.02 per cent), industrials (0.91 per cent), FMCG (0.80 per
cent), consumer durables (0.78 per cent) and consumer discretionary (0.74 per
cent).
IT, oil & gas, realty and teck were the laggards.
“Global stocks were headed for the best week in more than 9 weeks after a series
of Central Bank decisions, lifted by bets that the Federal Reserve will soon end its
tightening cycle and China will introduce fresh stimulus measures,” Deepak Jasani,
Head of Retail Research, HDFC Securities, said.
In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong ended in the green.
Equity markets in Europe were trading with gains. The US markets ended
significantly higher on Thursday.
“The domestic market rebounded with strong buying in banking, pharma, and
consumer stocks, along with positive cues from global markets. The US market’s
optimism was bolstered by better-than-expected retail sales, reflecting the
robustness of the economy.
“Furthermore, jobless claims remain elevated, and a decline in import prices
raised hopes for a prolonged pause in interest rate hikes by the Fed, contradicting
their announcement of potential future rate hikes made the previous day,” said
Vinod Nair, Head of Research at Geojit Financial Services.
The rupee rebounded by 34 paise to close at a month high against the US dollar
on Friday.
Global oil benchmark Brent crude dipped 0.62 per cent to USD 75.20 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 3,085.51 crore on
Thursday, according to exchange data.
“We reiterate our positive view but suggest limiting positions citing intermediate
choppiness. Instead of waiting for a new high in the index, we feel participants
should maintain their focus on identifying stock-specific trading opportunities,”
Mishra said.
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