The Sensex and Nifty50 hit new four-month closing highs, driven by gains in financial and IT stocks. Twins Bajaj, Reliance and Bharti Airtel were the main contributors to the rise in both main indices.
India’s equity benchmarks hit new four-month closing highs on Wednesday, with the Sensex crossing the 60,000 mark for the first time since April 5. the names played spoilsports.
Sensex and Nifty50 were up 0.8% during the session. The 30-stock index gained 481 points to finish 60,323.3 and the Nifty settled at 17,966, up 140.7 points from its previous close.
A total of 33 stocks in the Nifty50 basket rose for the day. Bajaj Finserv, Bajaj Finance, HDFC Life, Hero MotoCorp and Bharti Airtel were the top earners.
Tech Mahindra, Bharat Petroleum, Hindalco, HCL Tech and Tata Consumer – up 2.5% – were also among the top blue chip gainers.
On the other hand, Apollo Hospitals, Tata Motors, Mahindra & Mahindra, Maruti Suzuki, Cipla, UltraTech and Coal India – down around percent each – were the major laggards.
Bajaj Finance, Bajaj Finserv, Reliance and Bharti Airtel contributed 186 points to Sensex’s gain.
With the exception of the automotive sector, all spaces clung to the green.
“The continued participation of FIIs is the backbone of the current domestic market recovery. This reversal in the trend of FIIs is due to the resilience of the Indian economy, even as inflation continues to plague Western markets. “said Vinod Nair, Head of Research at Geojit Financial Services.
“The drop in commodity and oil prices has instilled confidence in foreign investors,” Nair added.
The overall market breadth favored the bulls, as 2,017 shares rose and 1,405 fell on BSE.
European stocks started the day with minor declines after a mixed session across Asia amid recession fears. The pan-European Stoxx 600 index was down 0.3% at last count.
S&P 500 futures fell 0.7%, suggesting a weaker open on Wall Street. IInvestors around the world have been waiting for macroeconomic data due this week for clarity on the strength of the global economy.