Sensex, Nifty stumble after milestones

Stock markets on a roll touched new highs on Monday but took a knock as industrial output data showed a slowdown that raised fears on the surge of optimism on the bourses. HT reports. See graphic

Stock markets on a roll touched new highs on Monday but took a knock as industrial output data showed a slowdown that raised fears on the surge of optimism on the bourses.

HT Image

The National Stock Exchange's benchmark Nifty touched the 5,400 mark briefly —the first time it had done so in 30 months — but slipped as factory output growth data for May showed a drop to 11.5 per cent, against an anticipated 15 per cent. The Nifty closed at 5,383, its highest closing point since February.

The 30-share Sensex on the Bombay Stock Exchange also crossed the 18,000 mark for the first time in three months before closing with a gain of 0.6 per cent at 17,937, its highest since April 6.

The Sensex, meanwhile is set to be traded in derivatives on the Frankfurt-based Deutsche Borse for which talks are on, BSE officials said. This would be the first time that the Sensex will be traded overseas. Nifty has a similar arrangement at Singapore.

The two indices continued with the gains in the markets for the third straight day after growth optimism in US led to an overall enthusiasm in the global markets and in expectation of a good earnings by the Indian companies for the quarter ended June 2010.

Infosys, the second-largest software exporter, saw its share prices rise to Rs 2,911.5, its highest ever just a day before it announces its first quarter results.

The early surge in India was reflecting positive sentiments across Asia.