Sensex, Nifty scale fresh record high levels on robust FII inflows

Benchmark equity indices Sensex and Nifty soared to new lifetime highs on Thursday, fuelled by intense buying in market heavyweights Reliance, ICICI Bank and HDFC Bank amid a recent surge in foreign capital inflows. Besides, stable global crude prices extended support to capital markets amid investors looking for fresh triggers, traders said.

Rallying for the sixth straight session, the 30-share BSE Sensex climbed 141.34 points or 0.18 per cent to settle at a new closing peak of 77,478.93. During the day, it surged 305.5 points or 0.39 per cent to 77,643.09.

As many as 2,282 stocks advanced while 1,571 declined and 128 remained unchanged on the BSE.

The BSE benchmark has jumped 1,022.34 points or 1.33 per cent in the last six days.

The NSE Nifty rose 51 points or 0.22 per cent to settle at its fresh closing high of 23,567. Intra-day, it soared 108 points or 0.45 per cent to 23,624.

"FIIs have been net buyers in Indian equities for the last three days and have bought Rs 12,600 crore, which includes a few large block deals. On the domestic front, the market is consolidating with a positive bias amid strong FII flows and healthy macros.

Also, an expectation of a growth-focused budget is aiding sentiments and is likely to lead to sector-specific action," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

Among the 30 Sensex companies, JSW Steel, Tata Steel, Axis Bank, Reliance Industries, ICICI Bank, Hindustan Unilever, Kotak Mahindra Bank and Asian Paints were among the biggest gainers.

In contrast, Mahindra & Mahindra, Sun Pharma, NTPC, Wipro, State Bank of India and Power Grid were among the laggards.

"Markets were a bit volatile in early trade but settled in positive territory to move in a range-bound manner thereafter, as investors resorted to stock-specific selection after witnessing record-breaking spree over the past few sessions. Also, US indices were closed on Wednesday, and hence, domestic investors were cautiously optimistic," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

In the broader market, the BSE smallcap gauge jumped 1 per cent, and the midcap index rallied 0.55 per cent.

Among the indices, realty jumped 1.97 per cent, commodities climbed 1.88 per cent, metal rallied 1.87 per cent, energy surged 0.90 per cent and industrials (0.50 per cent).

Telecommunication, utilities, auto, power and teck were the laggards.

"Global shares held around record highs on Thursday, helped by investor confidence in the chance of a drop in US interest rates this year, while the pound held steady ahead of a Bank of England meeting later in the day.

"European stocks strengthened after the Swiss National Bank delivered a second interest rate cut of 25 bps to 1.25 per cent," Deepak Jasani, Head of Retail Research at HDFC Securities, said.

In Asian markets, Seoul and Tokyo settled in the green, while Shanghai and Hong Kong ended lower.

Markets in Europe were trading in positive territory.

US markets were closed on Wednesday in observance of Juneteenth.

Foreign Institutional Investors (FIIs) bought equities worth Rs 7,908.36 crore on Wednesday, according to exchange data.

"....the decline in US bond yields has facilitated robust FII inflows in recent days," said Vinod Nair, Head of Research, Geojit Financial Services.

Global oil benchmark Brent crude climbed 0.16 per cent to USD 85.21 a barrel.

"In the near term, market attention is expected to centre around the upcoming Union Budget and the progress of monsoon," Nair said.

Rising for the fifth straight session on Wednesday, the BSE benchmark climbed 36.45 points or 0.05 per cent to settle at 77,337.59.

However, the Nifty ended at 23,516, down 41.90 points or 0.18 per cent. Intra-day, it rose 106.1 points or 0.45 per cent to 23,664.