Fireworks on bourses

Stock markets surged to all-time closing highs on Monday as positive macro data and encouraging comments by the IMF cheered investors, sending the benchmark BSE Sensex higher by 200 points.

By OUR BUREAU in Mumbai
  • Published 17.10.17
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Mumbai: Stock markets surged to all-time closing highs on Monday as positive macro data and encouraging comments by the IMF cheered investors, sending the benchmark BSE Sensex higher by 200 points.

The 30-share index scaled an all-time high of 32687.32 in early trade before ending up 200.95 points at 32633.64, the highest closing so far.

The broader NSE Nifty zoomed past the 10200-mark for the first time to hit an all-time high of 10242.95 in early trade. However, it pared some of its gains to settle at a record closing of 10230.85, up 63.40 points, or 0.62 per cent. It broke its previous record high of 10167.45, hit on October 13.

The market sentiment was buoyant in a truncated trading week ahead of Diwali and encouraging second-quarter earnings from oil-to-telecom conglomerate Reliance Industries. "Optimism over Q2 earnings and positive global cues continued to drive the market to fresh highs," said Vinod Nair, head of research, Geojit Financial Services Ltd.

"The Q2 results will gather significance in the coming days with the earnings of index heavyweights and decide the market's momentum," Nair said.

The rupee appreciating further to 64.74 against the dollar, too, fuelled the rally.

Sentiments got a lift after IMF chief Christine Lagarde on Saturday said the Indian economy was on a "very solid track" in the mid-term, triggering all-round buying activity, brokers said.

Wholesale inflation softening to 2.6 per cent in September from 3.24 per cent in August and exports growing at six-month high of 25 per cent in the month enthused investors.

Unabated buying by domestic institutional investors helped the key indices scale new highs.

A firming trend at other Asian markets and a higher opening of European shares tracking gains across the US and Asia boosted sentiments.

In the euro zone, stock exchanges in Frankfurt and Paris were up 0.20 per cent each in early trade. London's FTSE also rose 0.30 per cent.

Among Sensex gainers, Bharti Airtel rose further by 4.96 per cent after the company announced the acquisition of Tata group's loss-making mobile telephony business.