Sensex, Nifty scale new peaks on funds inflow, positive economic outlook
HeroMoto and Bharti Airtel closed up 3% each, while TCS, ITC, SBI and Maruti gained 2-3%.business Updated: May 16, 2017 16:09 IST
Indian share benchmarks continued its record-breaking spree on positive economic outlook and deluge of fund flows from both domestic and foreign investors.
The Sensex and Nifty hit record highs for the third time in five sessions after a raft of economic data showed India’s economic growth prospects look better in 2017-18, with a normal monsoon forecast, low inflation, and a revival in industrial growth.
Trade data showed on Monday India’s exports grew by 19.8% in April while imports jumped 49.1%.
A better-than-expected corporate earnings also point to better profit margins and improvement in stock valuation.
The Sensex rose 260 points, or 0.86%, to scale a new peak at 30,582.60, while the Nifty breached the 9,500-level to close at 9,512.25.
Except metals, all the sectoral indices were up. The BSE auto index was up 1.1%, realty 0.8%, banking 0.5%, oil and gas 0.3% and capital goods 0.25%.
HeroMoto and Bharti Airtel closed up 3% each, while TCS, ITC, SBI and Maruti gained 2-3%.
Asian markets were up with Japan’s Nikkei closing 0.25% higher, while Korea’s Kospi gained 0.2% and Shanghai 0.75%.
Europe was up after talks between newly elected French president Emmanuel Macron and Germany’s Angela Merkel to strengthen the European Union offset the negative sentiment of Britain’s plans to exit the euro zone.
Weak US economic data also increased chances the US Federal Reserve may stagger interest rate hike.
The US Dow Jones Industrial Average ended 0.41% higher on Monday.