Share Market: Buoyed by foreign fund inflows and optimism in US markets, equity benchmark indices Sensex and Nifty continued their dream run on Wednesday, hitting record-high levels in early trade. Buying in key indices Reliance Industries and HDFC Bank also helped the market to maintain its winning momentum.
Gaining for the fifth consecutive day, the 30-share BSE Sensex soared 293.59 points in early trade to hit its new all-time intra-day peak of 67,088.73. The NSE Nifty surged 80.3 points to a record intra-day high of 19,829.55.
From the Sensex pack, NTPC, IndusInd Bank, Infosys, Power Grid, Tech Mahindra, Wipro, Reliance Industries and HDFC Bank were the top gainers.
IndusInd Bank on Tuesday reported a nearly 2 per cent rise in consolidated net profit for April-June after the company reported a 30 per cent jump in consolidated net profit to Rs 2,124.50 crore, driven by a rise in core income and reduction in bad loan provisions.
Maruti, Mahindra & Mahindra, Asian Paints, Tata Consultancy Services, Bharti Airtel and Nestle were the laggards. Foreign institutional investors (FIIs) continued their buying activity on Tuesday as they bought equities worth Rs 2,115.84 crore, according to exchange data.
“Markets remain resilient, supported by a favorable global order and sustained FII inflows. It is important to understand that the ongoing global market rally is primarily driven by the strength of the US economy, which has so far been showing Chief Investment Strategist at Geojit Financial Services VK Vijayakumar said, there is no sign of recession which the market had feared and discounted in 2022.
How was the performance of Asia, US markets?
Vijayakumar said that continued FII inflows into India are providing additional impetus. In Asian markets, Tokyo remained in the green while Seoul, Shanghai and Hong Kong were trading lower. US markets closed in positive territory on Tuesday.
Global oil benchmark Brent crude fell 0.21 per cent to USD 79.46 per barrel. The Asian Development Bank (ADB) on Wednesday retained India’s economic growth forecast for the current fiscal at 6.4 per cent and 6.7 per cent for the next, saying strong domestic demand will continue to support the sector’s recovery.
On Tuesday, the BSE benchmark had closed at its new all-time high of 66,795.14, up 205.21 points or 0.31 per cent. The Nifty closed at its all-time high of 19,749.25, up 37.80 points or 0.19 per cent.
Read also: Can India become a developed nation by 2047? RBI has said this in its article
rupee falls against dollar
Meanwhile, the rupee depreciated 8 paise to 82.12 against the US dollar in early trade on Wednesday tracking the strength of the American currency overseas. Traders said domestic equity benchmarks hitting an all-time high and sustained foreign fund inflows boosted investor sentiments and limited the depreciation bias.
At the Interbank Foreign Exchange, the domestic unit opened at 82.08, then recovered to 82.12, registering a decline of 8 paise over its previous close. On Tuesday, the rupee had closed at 82.04 against the dollar.
Anil Kumar Bhansali, Head-Treasury & Executive Director, Finrex Treasury Advisors LLP said Rupee opened slightly lower as Reserve Bank of India (RBI) continued buying of US dollar below 82 levels. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.07 per cent to 100.01 on upbeat retail sales data from the US.