Top gainers in the Sensex pack included HDFC, Kotak Bank, ICICI Bank, SBI, HDFC Bank and Axis Bank. (representative image)
New Delhi: Equity indices on Wednesday claimed a record peak for the second day in a row, with the benchmark BSE Sensex crossing the 54,000 mark for the first time led by banking and financial stocks.
Rising for the third consecutive session, the BSE index jumped 546 points or 1.02 per cent to hit a fresh peak of 54,370; While the broader NSE Nifty rose 128 points or 0.79 per cent to end at a record 16,258.
Top gainers in the Sensex pack included HDFC, Kotak Bank, ICICI Bank, SBI, HDFC Bank and Axis Bank, rising up to 4.77 per cent.
While Titan, Nestle India, Ultra Semco, Sun Pharma, Maruti and Bharti Airtel were the top losers, falling up to 2.14 per cent.
Here are the top reasons for today’s boom:
* Banking, financial stocks rally
The banking and financial segment led the market rally. The Nifty Bank index, which had lost over 3 per cent in the last two weeks, rebounded with the same rally today.
Nifty Bank gained 2.33 per cent and Nifty Financial Services rose 2.59 per cent.
Anand James, chief market strategist at Geojit Financial, told Reuters: .
James said the breakout has also prompted several short-coverings and triggered buying in banking stocks, which were major laggards in the past few weeks, adding that the rally is mostly driven by Nifty 50 components.
* Strong quarterly results
The market sentiment is upbeat on the strong quarterly results from the corporate world.
Telecom operator Bharti Airtel Ltd posted a growth of 0.3 per cent after reporting 15 per cent growth in first quarter revenue, helped by higher data usage and customer additions.
Adani Ports and Special Economic Zone Ltd climbed up to 2 per cent after reporting a two-fold jump in June quarter profits.
Country’s largest bank SBI reported a 55 per cent rise in standalone net profit at Rs 6,504 crore for the first quarter of the current fiscal, helped by a decline in bad loans.
The bank’s gross non-performing assets (NPAs) out of total advances declined to 5.32 per cent at the end of June, from 5.44 per cent at the end of June last year.
*Positive Global Signs
Asian shares hit a one-week high, driven largely by US corporate earnings, though the mood remained cautious as the fast-spreading delta version of the coronavirus weighed on the global economic outlook.
MSCI’s broadest index of Asia Pacific shares outside Japan rose 0.1 per cent to its highest level since July 26.
Japan’s Nikkei was in the red like Chinese stocks in the blue-chip index, down 0.2 per cent. Hong Kong’s Hang Seng index fell 0.13 per cent on technical action from China as well as concerns about a spike in coronavirus infections in the mainland.
* Upbeat macroeconomic data
Binod Modi Head-Strategy at Reliance Securities told news agency Reuters that domestic equities still look good.
“Key economic indicators like GST collections, auto sales volume and other high frequency indicators like e-way bills indicate a strong rebound in July, which augurs well and continued healthy corporate growth in subsequent quarters,” he added. Indicates income,” he said.
Furthermore, he said India would benefit from China’s regulatory crackdown on technology and education companies in the form of FII investments in recent weeks.
Foreign institutional investors (FIIs) became net buyers in the capital market as they bought shares worth Rs 2,116.60 crore on Tuesday, according to provisional exchange data.
*RBI policy meeting
The Reserve Bank of India (RBI) began its three-day policy meeting today. It is expected to leave interest rates at a record low for the seventh time in a row when it announces its policy decisions on August 6.
Investors are bullish on expectations that the RBI may come up with some new liquidity measures to aid the economic recovery.
(with inputs from agencies)
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