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Indian stock market’s record-breaking run continues


The Sensex has vaulted 24% this year so far, recording the best gains among major global markets. — Photo: Bloomberg file

Mumbai: The market continued its north-bound journey for the second straight week, propelling both the key indices, Sensex and Nifty, to new peaks on buying in IT, tech, FMCG and pharma counters on uninterrupted foreign fund inflows and some robust first quarter earnings.

Profit-booking on the last trading day of the week ahead of the expiry of derivatives contracts on July 31 and persisting fears about a spike in oil price due to tension in West Asia and Ukraine weighed on the sentiment as both the indices retreated from their new closing highs. The market closed in the green on four out of the five trading sessions.

Improving macroeconomic indicators, monsoon progress and positive cues from global bourses supported the buoyancy in domestic indices, brokers said.

IT shares
IT shares were in the limelight and at the forefront of the rally on good earnings from tech giants Infosys and TCS, whose numbers exceeded investor expectations, they said. The S&P BSE Sensex resumed higher and rallied further to a new intra-day peak of 26,300.17 before losing some ground on the last day to settle at 26,126.75, up 485.19 points, or 1.89 per cent, over the last weekend close. Last week, the 30-share index had zoomed 617.21 points, or 2.47 per cent.

Similarly, the broad-based 50-issue CNX Nifty of the National Stock Exchange logged its intra-trade historic high of 7,840.95 before finishing the week at 7,790.45, posting a rise of 126.55 points, or 1.65 per cent. The rupee broke its two-week of losing streak and appreciated by 18 paise to close at 60.10 against the American currency during the week under review following bullish local equities amid fresh dollar selling by exporters.
Continued capital inflows also aided the rupee recovery.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced slightly better at 60.25 a dollar from last weekend's close of 60.28 and dropped to a low of 60.3250 on dollar demand from importers, mainly oil refiners, to meet their month-end requirements. However, it later bounced back to breach 60-mark to a high of 59.98 on strong equities and fresh dollar offloading by exporters before settling the week at 60.10, exhibiting a rise of 18 paise or 0.30 per cent.

In last two-weeks, it had plunged by 56 paise or 0.94 per cent.

Forward dollar premiums continued its downslide on persistent receipts by exporters.

The RBI fixed the reference rate for the USD at 60.1448 and the euro at 80.0173 from 60.33 and 81.5848 previous week end.

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good.