Today in New Delhi, India
Oct 16, 2018-Tuesday
New Delhi
  • Humidity
  • Wind

Sensex ends above 26,000, Nifty hits new high on budget hopes

The benchmark Sensex crossed the 26,000-mark for first time in its history and extended gains for the second consecutive day on Monday surging 138 points on positive hopes from Modi government's maiden Budget on Thursday.

business Updated: Jul 07, 2014 19:36 IST

The benchmark Sensex crossed the 26,000-mark for first time in its history and extended gains for the second consecutive day on Monday surging 138 points on hopes Narendra Modi government will announce growth-oriented policies in its maiden Budget on Thursday.

Persistent capital inflows were also another factor behind the spurt in share values, traders said.

The 30-share BSE index after commencing the session above the historic 26,000 mark, climbed to touch a new intra-day record high of 26,123.55. It finally ended 138.02 points, or 0.53% up, at a new closing peak of 26,100.08. The gauge surpassed its previous closing high of 25,962.06 on Friday when it had gained 138.31 points.


Riding high on budget hopes Sensex ends above 26,000 mark

Infosys, TCS and Tata Motors led 21 gainers in 30-share Sensex while HDFC Bank, ONGC and ICICI Bank were laggards.

"Expectations are government will use the Union Budget to create an environment, which is conducive for growth. The idea will be to drive GDP growth to over 6% in FY16, and further accelerate it to 7-8% in ensuing years," said Arvind Sethi, MD & CEO, Tata Asset Management The wide-based 50-issue CNX Nifty of the NSE rose 35.55 points, or 0.46%, to end at new closing peak of 7,787.15. It logged an intra-day high of 7,792.00.

Investors have been accumulating blue-chip stocks on hopes that finance minister Arun Jaitley on July 10 in the Budget would announce industry-friendly measures to revive the country's economy that is growing at near the slowest pace in a decade. Last week, Sensex jumped 862.14 points.

IT, power, pharma and auto counters attracted good buying support while shares from banking and refinery saw losses.

"Additionally, sentiments were further boosted after Brent crude slipped to 3-week low as Libya geared up to resume exports from two ports that have been closed for nearly a year," said Jayant Manglik, President-retail distribution, Religare Securities.

Globally, Asian stocks ended mixed as key benchmark indices in China, Singapore and Taiwan moved up by 0.03-0.59% . Indices in Hong Kong, Japan and South Korea, however, eased by 0.02-0.37%. European markets were trading lower on profit-booking.

Foreign Portfolio Investors bought shares worth a net Rs 943.19 crores last Friday, as per provisional data.

Market participants are also looking at the Railway budget on Tuesday.

Major Sensex gainers on Monday included Tata Power (3.59%), Infosys (3.23%), TCS (3.06%), Tata Motors (2.20%), Dr Reddy's Lab (1.95%), Wipro (1.86%), Bharti Airtel (1.80%) and NTPC (1.73%). SunPharma (1.59%) and Hero MotoCorp (1.22%) also notched up good gains. However, HDFC Bank fell by 1.90%, followed by ONGC 1.60%, Gail India 1.08% and ICICI Bank 0.79%.

"Investors have sector specific expectations from the current budget and if all goes favorable, it can strengthen the current rally and Nifty can go beyond 8000 level in near term too. However, as the market is already at higher levels, caution must be maintained in taking long positions," said Rakesh Goyal,Senior Vice President,Bonanza Portfolio.

Among the S&P BSE sectoral indices, IT rose by 2.63%, followed by Teck 2.16%, Power 1.12% and Healthcare 0.80%.

However, Bankex fell by 1.12% and Oil& Gas by 0.91%.

Market breadth continued to remain positive as 1,715 stocks finished with gains while 1,359 stocks ended lower. Total turnover rose to Rs 4,205.06 crore from Rs 3,862.53 crore on Friday.

First Published: Jul 07, 2014 10:08 IST