The BSE Sensex rallied to a new all-time intra- day high of 33,340.17, surpassing its previous record of 33,286.51 hit on October 27. But it lost ground due to profit-booking and settled at a new closing peak of 33,266.16, up 108.94 points, or 0.33%. The previous record close was 33,157.22 on Friday. In six days, the index has gained 876.19 points.
For the NSE Nifty too, the intra-day reading was a new high of 10,384.50, bettering its record of 10,366.15 on Friday. However, it closed at 10,363.65, still a new high, up by 40.60 points, or 0.39%. In the process, it went past the earlier record of 10,343.80 reached on October 26.
“Strengthening rupee and affirming signs of recovery in domestic earnings season continued to lift the market. Infra, PSU banks and auto stocks are performing well due to the stimulus package and likely good sales data due to festival demand,” said Vinod Nair, head of research, Geojit Financial Services. “On the global front, market participants are likely to stay conservative ahead of the two-day FOMC meeting from today.”
Domestic energy stocks lit up, with Brent crude soaring to its highest level since July 2015, after Saudi Arabia agreed to support the extension of a global oil production cut agreement. Lupin stirred up maximum interest as it was the best performing stock by surging 2.67% to Rs1,027.55 despite a 31.3% decline in consolidated net profit for the September quarter. It was followed by ONGC, up 1.69%, at Rs186.65 after the company reported a higher-than-expected 3.1% rise in earnings.
India’s largest public lender State Bank of India rose 0.37% to Rs312.10 while Punjab National Bank gained 3.92% to Rs203.95 on hopes that the government’s capital infusion will help them clean up their balance sheets. Syndicate Bank, Union Bank of India, Allahabad Bank and Bank of Maharashtra all rose by up to 8.15%.
On the sectoral map, consumer durables stayed in the lead by surging 2.39%, followed by realty index, oil and gas and infra. FMCG and metal indices were at the receiving end of profit-booking as they fell. The market rally lifted the small-cap index by 1.25% and mid-cap 1.13%.
Meanwhile the rupee yesterday strengthened against the US dollar, after local equity markets closed higher for sixth consecutive sessions.
The home currency ended at 64.85 against the dollar, up 0.30% from its Friday’s close of 65.05. The rupee opened at 64.92 a dollar and touched a high of 64.80.
Bond yield hits near six month high. The 10-year bond yield ended at 6.882% compared to its previous close of 6.805%. Bond yields and prices move in opposite directions.
So far this year, the rupee has gained 4.5%, while foreign institutional investors have bought $5.77bn and $22.40bn in equity and debt, respectively.
Asian currencies were trading higher ahead of the expected announcement of the new US Federal Reserve chair. According to a Bloomberg report, President Donald Trump favours Jerome Powell for the next Fed chair.
South Korean won was up 0.58%, Taiwan dollar 0.30%, Indonesian rupiah 0.16%, Philippines peso 0.14%, China renminbi 0.10%, Japanese yen 0.1%, China offshore 0.07% and Malaysian ringgit 0.06%.
