Mumbai May 26 (IANS) Healthy pick-up in heavyweight stocks of Reliance Industries Tata Steel and ITC on Friday lifted the BSE Sensex and the NSE Nifty to touch fresh record highs of 31 000 and 9 600 points mark respectively.
Markets observers opined that quarterly results strong rupee and expectations of further economic reforms from the central government accelerated the ongoing market rally.
The 30-scrip Sensitive Index (Sensex) of the BSE crossed the 31 000 mark for the first time in its history to close at a new high of 31 028.21 points -- up 278.18 points or 0.90 per cent from its previous close at 30 750.03 points.
The Sensex touched a new high of 31 074.07 points intra-day.
The wider 51-scrip NSE Nifty too surged and for the first time ever touched the 9 600-mark. The index ended at a new high of 9 595.10 points after touching a fresh intra-day high of 9 604.90 points.
Markets rallied sharply higher on Friday to new life highs. Gains in index heavyweight Reliance Industries (RIL) and ITC boosted key benchmarks higher Deepak Jasani Head (Retail Research) HDFC Securities told IANS.
Broad market indices like the BSE mid-cap and small-cap indices too rose and outperformed the main index.
The S&P BSE mid-cap index rose by 2.06 per cent and the small-cap index by 1.60 per cent.
Anand James Chief Market Strategist Geojit Financial Services said: Impressive rollover numbers and strong rupee boosted sentiments allowing the index heavy weights to help markets to rise to record peaks.
Banks were also seen jumpy ahead of the RBI s meet on stressed assets recovery. Pharma though continued to struggle which were trounced by dismal earning numbers and intense pricing pressure in the US market.
On the currency front the rupee strengthened by 17 paise to 64.44-45 per US dollar from its previous close of 64.61-62.
Sector wise all the sub-indices of the BSE closed in the green except the S&P BSE healthcare index which fell by 104.02 points.
The S&P BSE metal index augmented by 375.31 points the automobile index by 313.85 points and the oil and gas index by 288.70 points.
According to Vijay Singhania founder-Director Trade Smart Online the minutes from the US Federal Reserve s May 2-3 policy meeting were in large part responsible for the sudden spike in enthusiasm.
The US Fed signalled that it will wait for more data for a rate hike. This prompted investors to cover their short bets as Thursday was also the last day for May futures and options contracts Singhania explained.
Postive sentiments on the street can also be attributed to an early and normal monsoon forecast. Things are improving on the macro front with GST (Goods and Services Tax) implementation (from 1 July) on the horizon and with the bad asset resolution ordinance.
In investments provisional data with the exchanges showed that foreign institutional investors (FIIs) bought stocks worth Rs 589.11 crore while domestic institutional investors (DIIs) divested scrips worth Rs 236.44 crore.
Major Sensex gainers on Friday were: Tata Steel up 5.46 per cent at Rs 511.80; ITC up 2.99 per cent at Rs 308.65; Power Grid up 2.57 per cent at Rs 203.80; Reliance Industries up 2.53 per cent at Rs 1 335.80; and Adani Ports up 1.82 per cent at Rs 346.95.
Major Sensex losers were: Sun Pharma down 3.93 per cent at Rs 568.55; Cipla down 2.48 per cent at Rs 491.60; Lupin down 2.29 per cent at Rs 1 111.90; Tata Consultancy Services (TCS) down 1.55 per cent at Rs 2 579.30; and Dr. Reddy s Lab down 0.64 per cent at Rs 2 411.70.
--IANS
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Sensex mounts 31k, Nifty scales 9,600 points peak (Roundup)
