regular-article-logo Thursday, 29 February 2024

Benchmark indices Sensex, Nifty keep up record run

The gains came despite crude oil prices remaining elevated on production cuts from Saudi Arabia and Russia

Our Special Correspondent Mumbai Published 16.09.23, 07:23 AM
Representational image.

Representational image. Sourced by the Telegraph

Benchmark indices on Friday hit record highs on encouraging global cues and optimism over the prospects for sectors such as auto and IT.

Extending its gains for the 11th consecutive session, the BSE Sensex shot up 319.63 points or 0.47 per cent to a record close of 67838.63. During intra-day trades, it zoomed 408.23 points to touch a new all-time high of 67927.23.


Similarly, the Nifty gained 89.25 points or 0.44 per cent to finish at an all-time high of 20192.35. During the day, it rose 119.35 points to reach an all-time intra-day peak of 20222.45.

The gains came despite crude oil prices remaining elevated on production cuts from Saudi Arabia and Russia.

Benchmark Brent crude opened at $94.02 to a barrel over the last close at $93.70 and was trading at $93 levels at the time of writing this report.

Its rise has again fuelled concerns of rising inflation at a time vegetable prices have moderated.

However, the Reserve Bank of India (RBI) is expected to keep the policy repo rate unchanged at its meeting next month.

“Domestic equities maintained their winning streak, following their global peers, boosted by better-than-expected Chinese and US economic data as well as optimism that the European Central Bank may be close to peak interest rates,” Siddhartha Khemka, head — retail research, Motilal Oswal Financial Services Ltd, said.

Data from the world’s second largest economy showed retail sales and industrial output beat expectations.

Market circles said that investors have also begun to focus on the upcoming festival season and the sectors that could benefit from consumer spending.

Consequently, auto stocks saw spirited buying resulting in the BSE auto index rising nearly 1.50 per cent with Bajaj Auto, TVS Motors, Mahindra & Mahindra and Hero MotoCorp among others witnessing gains of up to 5.99 per cent. IT counters also gained on hopes of a strong order book.

``The market is inching towards a new direction with renewed buying in auto and IT stocks in expectation of strong festive demand and a strong deal wins. Better-than-expected economic data from China and stimulus hopes further added optimism in global markets,” Vinod Nair, head of research at Geojit Financial Services, said.

“The ECB (European Central Bank) hinted at a potential pause in rates due to receding inflation, while investors are now focused on central bank meetings next week, with the US Fed, BoE (Bank of England), and BoJ (Bank of Japan) set to announce their rate decisions,” he said.

In the Sensex group, Bharti Airtel was the biggest gainer.

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