Sensex and Nifty trade new trajectories

Sensex and Nifty trade new trajectories

Sensex and Nifty trade new trajectories

While Indian shares surged to a record high on Thursday, with the benchmark BSE index rising above 32,000 for the first time, a sharp drop in consumer inflation rate to its lowest in five years also helped Indian bonds post smart gains.

Eleven of the 13 sector indexes compiled by BSE Ltd advanced, paced by the S&P BSE India Oil & Gas Index's 1.3 percent rise.

Yesterday, the Dow Jones Industrial Average (DJIA), NYSE's benchmark index rose to a record high on close while United States stocks kept their upward momentum on Wednesday following Federal Reserve Chair Janet Yellen's congressional testimony to gradually raise interest rates.

The BSE barometer finally closed at a new closing high of 31,804.82, up 57.73 points, or 0.18 per cent.

Traders said ample liquidity in the market is driving the current phase of the rally amid optimism over earnings from blue-chip companies.

Similarly, the broader 50-issue NSE Nifty spurted by 75.60 points, or 0.77 per cent, to close at fresh lifetime high of 9,891.70, bettering its record of 9,816.10 hit on Wednesday. However, some profit booking in recent gainers pulled the index down to a day's low of 31731.43 points. Unlike in the past, banks and IT stocks did not contribute meaningfully to the latest rise.

Foreign Institutional Investors (FIIs) have continuously pumped in dollars to fuel domestic equity markets. "Local fund and non-fund inflows contributed to this rise", he said. Cabinet approval for the deal is expected in a few weeks.

Among Nifty stocks, ICICI Bank was the top gainer, up 2.10 per cent, followed by Indiabulls Housing Finance, ITC, Axis Bank and L&T - up between 1.2 per cent and 1.8 per cent.

Other than banking, FMCG, pharma and IT shares also witnessed buying with their respective sectoral indices rising between 0.6 per cent and 1.1 per cent.

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