Mumbai Jan 19 (IANS) Extending gains for the third consecutive session the key Indian equity indices on Friday zoomed to new highs with the NSE Nifty50 crossing the psychologically important 10 900-mark for the first time.
According to market observers positive global cues coupled with upbeat quarterly corporate earnings and healthy buying in banking stocks gave momentum to the upward rally of the key indices.
In addition the Goods and Services Tax (GST) Council s decision on Thursday to slash the GST rate on 54 services and 29 items including old and used motor vehicles public transport buses run on bio-fuels sugar-boiled confectionery and packaged water cheered investors.
The wider Nifty50 of the National Stock Exchange (NSE) touched a record intra-day high of 10 906.85 points.
However the Nifty50 failed to sustain the 10 900-mark and closed at a new high of 10 894.70 points -- higher by 77.70 points or 0.72 per cent from its previous close.
On the BSE the barometer 30-scrip Sensitive Index (Sensex) provisionally closed at a new high of 35 511.58 points -- up 251.29 points or 0.71 per cent from its previous session s close -- after touching a fresh high of 35 542.17 points during intra-day trade.
In contrast the BSE market breadth remained bearish as 1 506 stocks declined as compared to 1 393 advances.
"Markets surged higher in late afternoon trade to yet another new record high after opening on a negative note " Deepak Jasani Head - Retail Research HDFC Securities told IANS.
"Sentiments were boosted on the back of firmness in global markets and slashing the tax rate on 54 services and 29 items by the GST council in its latest meet and also the proposal for simplifying return filing process for businesses " he added.
In the broader markets the S&P BSE mid-cap index fell sharply to close higher by 0.77 per cent and the small-cap index by 0.88 per cent.
Vinod Nair Head of Research Geojit Financial Services said: "The government s decision to cut GST rate for a few more items and a good start to earnings season added energy in the market.
"The market is anticipating a sea change in the earnings with a growth of 15-20 per cent in PAT (profit after tax) led by revamp in businesses and low base effect. Moreover positive trend in global market and drop in crude prices influenced buying pattern."
On the currency front the Indian rupee strengthened by three paise to close flat at 63.85 against the US dollar.
Provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 988.25 crore and the domestic institutional investors worth Rs 209.86 crore.
"Markets ended with spectacular record highs and closed in green for the third straight time led by financial stocks. Both indices posted their seventh consecutive weekly gains " Dhruv Desai Director and Chief Operating Officer of Tradebulls told IANS.
All the 19 sub-indices of the BSE ended with gains. The S&P BSE banking index surged the most -- up 456.01 points -- followed by capital goods index by 183.62 points and metals index by 137.48 points.
Major Sensex gainers on Friday were: Adani Ports up 4.68 per cent at Rs 433.75; Yes Bank up 2.37 per cent at Rs 348.30; ICICI Bank up 2.15 per cent at Rs 353.55; State Bank of India up 2.08 per cent at Rs 309.05; and Tata Consultancy Services up 1.53 per cent at Rs 2 954.75.
Major Sensex losers were: Infosys down 0.82 per cent at Rs 1 143.25; Sun Pharma down 0.74 per cent at Rs 572; Power Grid down 0.61 per cent at Rs 196; Maruti Suzuki down 0.40 per cent at Rs 9 321.35; and ONGC down 0.23 per cent at Rs 193.60.
--IANS
ppg/him/dg
