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India's Sensex, Nifty climb to a new record on lower crude prices


Bombay Stock Exchange. Photo: Bloomberg file

Mumbai: Bull run continued unabated for the seventh straight sixth session as both the key indices, Sensex and Nifty, sustained their non-stop journey to new peaks for the second day in a row and closed up by 30 points and 23 points respectively on hopes fall in under-recovery by oil companies after lower global crude oil prices amid firm trend in world stocks.

The brent crude oil fell to near 14-month low near $101 a barrel on Monday which will give respite to Prime Minister Narendra Modi's government to tackle both deficits, current account as well as fiscal and will also lower the government's subsidy bill, boosting the investor confidence.

Sustained buying by foreign funds as well as renewed purchases by domestic institutions also aided the uptrend.

The S&P BSE 30-share Sensex resumed strong in line with better Asian cues on the back of sharp rally on Wall Street on Monday and immediately touched an all-time intra-day high of 26,530.84 before logging new closing peak of 26,420.67, a net rise of 29.71 points or 0.11 per cent.

The broader 50-issue CNX Nifty of the NSE early crossed 7,900-mark for the first time in history and touched a high of 7,918.55 before settling at 7,897.50 -a new closing peak.

Auto, realty, power and capital goods shares were at the forefront of the bull rally. Only S&P BSE IT and S&P BSE Teck indices closed in the red while other 10 sectoral indices finished with gains between 0.13 per cent and 2.25 per cent.
Shares of mid-cap and small-cap companies also continued their upward march on heavy buying by retail investors and their indices S&P BSE Mid-cap and S&P BSE Small-cap closed up by 1.10 per cent and 1.21 per cent and outperformed the Sensex.
 
Jignesh Chaudhary, Head of Research, Veracity Broking Services said,"Positive sentiments in the global equities helped local indices to post new all time high and close strong with the help of blue chips supported by both FIIs and DIIs buying. DIIs also showed the confidence in the market."

Rupee appreciates
After four days of long holiday, the rupee rallied for the straight second session and appreciated by nine paise to close at a fresh-two-week high of 60.67 against the Greenback on sustained dollar selling by exporters amid continued capital inflows in firming local equities, in an otherwise lacklustre trade on Tuesday.

However, strong dollar overseas restricted the rise to some extent, a forex dealer said.

The rupee resumed a paisa lower at 60.77 a dollar from last Thursday's close of 60.76 and immediately touched a low of 60.78 only to bounce back on bullish equities following firm global cues triggered by lower crude prices.

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