Benchmark indices maintained their record-breaking streak on Wednesday, with both the Sensex and Nifty ending at historic highs on expectations of a robust economic growth and a favourable Union budget.
Large-cap stocks led by Reliance Industries Ltd stole the show, while the broader market, which represents mid-cap and small-cap stocks, exhibited a mixed trend amid concerns of expensive valuations.
The 30-share BSE Sensex jumped 620.73 points to close at a new high of 78674.25. During the day, it rallied 705.88 points to touch an all-time high of 78759.40.
On the NSE, the Nifty added 147.50 points to its tally and ended at an all-time peak of 23868.80. During the day, it surged 168.6 points to a lifetime high of 23889.90.
The benchmarks have now risen for the third straight session as investor wealth rose ₹2.53 lakh crore during this period.
In the Sensex pack, RIL stood out as its shares shot up 4.09 per cent to close at ₹3,027.40. The share vaulted 4.04 per cent to hit a new 52-week high of ₹3,037.
The gains added ₹80,359.48 crore to its market capitalisation, which rose to ₹20.48 lakh crore.
RIL was followed by Bharti Airtel, UltraTech Cement, ICICI Bank, Axis Bank and NTPC which rallied up to 3.07 per cent.
"Telecom, cement, oil and gas and banking sectors led the gains on Wednesday. Telecom stocks saw significant gains on expectations of tariff hikes, while cement stocks witnessed renewed buying interest, driven by expectations of higher government spending on road construction,” Siddhartha Khemka, senior group VP of Motilal Oswal Financial Services Ltd, said.
“Sentiment for banking and financials has improved after lower current account deficit. Overall optimism surrounding the Union budget, increasing FII inflows and robust domestic economic data contributed towards the positive movement in the market,’’ Khemka said.
While domestic institutions remained buyers with net purchases of over ₹5,100 crore, provisional data showed foreign portfolio investors (FPIs) being net sellers to the tune of ₹3,535 crore.
“The domestic market hit a new peak, bolstered by a rally in large-cap stocks, where the valuation is relatively fair. Currently, the financials and consumption stocks are catching up driven by improved balance sheets, a strong GDP growth forecast and softening inflation. Global market sentiments reflected similar trends, with a consensus on imminent rate cuts,” Vinod Nair, head of research, Geojit Financial Services, said.
Market circles added that apart from optimism relating to the economy, investors are expecting a positive Union budget that could be characterised by higher capital spending and providing more impetus to consumption.
