Sensex, Nifty log new highs on eco reforms
Indian markets on Thursday cheered Modi government's move to ease FDI rules in construction sector and the Federal Reserve sticking to its stance of low US interest rates with benchmark Sensex surging about 248 points to end at new peak of 27,346.33, extending gains for the third day.
The NSE 50-share Nifty index also ended higher by 78.75 points, or 0.97%, at 8,169.20 after hitting an all-time intra-day high of 8,181.55 during the day.
Brokers said fresh dose of capital inflows, good corporate earnings and rating agency Moody's favourable report on rating profile of India also boosted buying as investors bought shares across-the-board. Gains were led by Realty, IT, Teck and Consumer Durables as 1,586 shares ended higher on BSE, pushing up investor wealth to over Rs 95.35 lakh crore.
The BSE Sensex resumed higher at 27,098.94 and shot up further to life-time high of 27,390.60 before ending at all- time closing high of 27,346.33 -- a gain of 248.16 points or 0.92%. In three days, it has gained nearly 600 points.
In a boost to cash-starved realty industry, government on Wednesday relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms. DLF, Unitech and HDIL scrips rose.
"Fed's statement sparked confidence in the markets that the low interest rates are still to remain for longer term. This combined with strong earnings performance by index stocks took markets beyond its previous all-time highs," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
Moody's today said the recent reform measures by the government coupled with those unveiled by the RBI on the economic, fiscal and financial fronts, are credit positive as they will help growth if successfully implemented.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said, "Sensex and Nifty made new life time highs and bourses saw the highest turnover ever at over Rs 10 trillion." Overseas investors pumped in a net Rs 785.61 crore on Wednesday, as per provisional data issued by stock exchanges.
Globally, Asian stocks ended mixed. US stocks closed with slight losses yesterday after the Fed ended its stimulative monthly bond-buying programme as expected. However, Europe was trading lower in their late morning deals.