Mumbai July 26 (IANS) Boosted by positive global cues along with expectations of healthy quarterly results and intense buying activities witnessed in metal banking and automobile stocks the Indian equity markets on Wednesday surged to a record high with the benchmark index NSE Nifty50 closing firmly above the 10 000-point mark for the first time.
On Tuesday the wider Nifty50 of the National Stock Exchange (NSE) climbed the 10 000-point peak for the first time in its almost 22-year history but soon ceded its gains to close on a flat note on the back of profit booking and expensive valuations after touching an intra-day high of 10 011.30 points.
However the key index surpassed even that level and scaled a record intra-day high of 10 025.95 points on Wednesday before closing at 10 020.65 points.
The other benchmark index -- BSE Sensex -- too touched a fresh high of 32 413.63 points intra-day.
According to market observers some cautiousness prevailed in the global markets ahead of the outcome of the two-day US Federal Open Market Committee meet later in the evening.
At closing time the NSE Nifty50 rose by 56.10 points or 0.56 per cent to close at a new high of 10 020.65 points.
The 30-scrip Sensitive Index (Sensex) closed at a fresh high of 32 382.46 points -- up 154.19 points or 0.48 per cent -- from its previous close at 32 228.27 points.
The BSE market breadth was however slightly bearish with 1 365 declines and 1 324 advances.
In terms of the broader markets the BSE mid-cap index rose by 0.18 per cent and the small-cap index by 0.28 per cent.
"Markets rallied to new life highs on Wednesday with the Nifty closing above the 10 000-level for the first time. The main indices opened the session with small gains amid initial volatility which later hovered in green with small-to-modest gains. They extended intra-day gains towards late trade to hit fresh record highs " Deepak Jasani Head of Retail Research HDFC Securities told IANS.
"Globally investors awaited the outcome of a two-day US Federal Reserve s policy meeting scheduled later today (July 26). Markets will be watching for any signals about another possible rise in the benchmark lending rate in 2017 and on when the Fed will begin winding down its multi-trillion-dollar investment holdings " Desai added.
On the currency front the rupee strengthened by 2-3 paise to 64.36 to a US dollar from its previous close at 64.38-39.
In investments provisional data with the exchanges showed that foreign institutional investors (FIIs) sold scrips worth Rs 60.60 crore while domestic institutional investors (DIIs) purchased stocks worth Rs 676.61 crore.
According to Dhruv Desai Director and Chief Operating Officer of Tradebulls the benchmark index Nifty reclaimed the 10 000-milestone led mainly by gains in metal stocks.
"Expectations of a better earnings season with improving economic indicators have increased investor confidence extending a record-setting rally this year although high valuations are seen capping gains in the near term " Desai told IANS.
"The Nifty has hit a string of record highs this year and is Asia s third best-performing index this year with a 22 per cent gain."
Sector-wise the S&P BSE metal index rose by 213.57 points the banking index by 204.83 points and the capital goods index by 156.48 points.
On the other hand the S&P BSE Teck index slipped by 22.11 points the IT index by 20.68 points and the telecom index by 5.79 points.
Major Sensex gainers on Wednesday were: Tata Steel up 2.22 per cent at Rs 565.40; Sun Pharma up 2.08 per cent at Rs 578.45; ICICI Bank up 2.07 per cent at Rs 310.20; Mahindra and Mahindra up 1.94 per cent at Rs 1 417; and Cipla up 1.82 per cent at Rs 574.80.
Major Sensex losers were: Axis Bank down 2.90 per cent at Rs 528.85; Asian Paints down 1.43 per cent at Rs 1 135.50; Tata Consultancy Services down 0.62 per cent at Rs 2 554.80; Bharti Airtel down 0.32 per cent at Rs 426.25; and Bajaj Auto down 0.24 per cent at Rs 2 838.
--IANS
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