Benchmark indices breached key psychological levels on Wednesday with investors upbeat on the good progress of the monsoon and expecting good first-quarter corporate results amid persistent foreign portfolio inflows.
The Sensex breached the 64000-mark intra-day to touch a lifetime high of 64050.44, while the broader Nifty finally surmounted 19000 as it reached 19011.25. Though both the indices retraced from these psychological levels, they still closed at historic highs.
Stocks maintained their earlier run with the Sensex galloping 499.39 points or 0.79 per cent to close at 63915.42.
The Nifty climbed 154.70 points or 0.82 per cent to end at a closing high of 18972.10 points. Market circles said the impending merger of HDFC with HDFC Bank also contributed to the positive sentiment.
They pointed out that the quick progress of the monsoon may further moderate inflation and there is an optimism that companies will report strong earnings in the upcoming results season.
Heavy purchases by FPIs are a factor behind the indices scaling new highs. In June, they parked Rs 32,300 crore in equities, and it is the fourth straight month where they have been net buyers of stocks.
“After a seven-month consolidation, the Nifty has surpassed the 19000 mark, and what’s more, all sectors are in the green as well. Investors are turning positive on risk assets, taking comfort from the recent fall in inflation, anticipating the end of the rate hike cycle,” Amar Ambani, group president & head — institutional equities at Yes Securities, said.
Tata Motors was the biggest gainer in the Sensex pack, rising 2.38 per cent. It was followed by Sun Pharma, Titan, L&T, IndusInd Bank, RIL, NTPC and UltraTech.
