Sensex scales 31,000 peak, Nifty flirts 9,600 as FIIs pump in more money to cash in on Modi reforms

Investors took comfort from the new June derivatives series that indicates that shares are set to rise further as a normal monsoon forecast boosts earnings of India Inc in coming quarters.

Indian share benchmarks scaled new height on Friday as foreign investors pumped in more money on hopes of faster reforms and as companies came up with encouraging earnings results.

The BSE Sensex jumped 324 points, or 1.05%, to an all-time intra-day high of 31,074.07. (PTI photo)

Investors also took comfort from the new June derivatives series that indicates that shares are set to rise further as a normal monsoon forecast boosts earnings of India Inc in coming quarters.

A slower-than-expected hike in interest rates by the US Federal Reserve and a risk-on mode triggered after OPEC decided to extend the oil output cut to March 2018 boosted sentiment across the world.

The BSE Sensex jumped 324 points, or 1.05%, to an all-time intra-day high of 31,074.07, breaking its previous landmark of 30,793.43 recorded on Thursday. The NSE Nifty touched a peak 9,604.90, surpassing its previous intra-day high of 9,532.60 touched on May 17

However, the benchmarks gave away some gains due to last-minute profit booking. The Sensex closed 278 points higher, or 0.9%, at 31,028.21. The Nifty slipped from the 9,600-level to close at 9,595.10, up 0.9% from Thursday’s close.

All major indices were up--the BSE metals index was up 3.4%, oil and gas 2.1%, power 1.6%, capital goods 1.5% and auto 1.3%.

HPCL was up as much as 12% on the back of a 66% rise in Q4 net profit, while ITC rose 3% after reporting 12% rise in PAT.

Adani shares were up after Queensland state Premier Annastacia Palaszczuk said the cabinet will discuss on Monday the extent of royalty the company has to pay for its Carmichael coal mine project in Australia.

Foreign institutional investors purchased Indian shares worth Rs 589.11 crore on Thursday, which reflects the growing attractiveness of Asia’s third largest economy as an investment destination.

On Wednesday, the Union Cabinet approved scrapping of the Foreign Investment Promotion Board to pave the way for faster capital inflows.

Other reform measures including a new government procurement policy to boost Modi’s flagship “Make in India” initiative along with a “strategic partnership” scheme for manufacturing fighter jets, helicopters, armoured vehicles and submarines, promises lumpy foreign investment.

Asia traded mixed with Japan’s Nikkei trading down 0.6% and Singapore’s Straits Times fell 0.46%. South Korea’s Kospi was up 0.5%, Hong Kong’s Hang Seng 0.03% and China’s Shanghai Composite 0.1%.

The US Dow Jones Industrial Average ended 0.34% higher on Thursday.