Sensex, Nifty rise to fresh closing peak; Bhel zooms 17%
Continuing its upward journey, the benchmark BSE Sensex spurted by nearly 276 points in opening trade on Monday on sustained fund inflows on hopes of a stable government at the Centre after the BJP-led NDA's victory in the Lok Sabha elections.business Updated: May 19, 2014 17:06 IST
Extending gains for the third day,the benchmark Sensex jumped 241 points to end at a new closing peak of 24,363.05 on Monday on continued fund inflows linked to decisive mandate for Narendra Modi-led BJP in elections, boosting shares of power and capital goods companies.
Investor sentiment in the past few days has been buoyant with participants hoping that a stable and business-friendly government will put growth back on track and kick-start reforms, which will give a fillip to earnings of listed firms.
The NSE Nifty also jumped 60.55 points, or 0.84%, to end a new closing high of 7,263.55 -- surpassing Friday's close of 7,203.00. The Sensex's previous closing peak was 24,121.74.
The rising rupee, which surged to 58.37 against the US dollar intra-day, threatened to spoilsport as shares of IT and pharma companies -- mostly exporters -- were beaten down.
Brokers said buying activity gathered momentum on robust foreign funds inflow on optimism that the new government at the Centre would shortly take steps to revive economic growth.
"Markets continued to move upwards on Monday in light of NDA's resounding victory in Lok Sabha polls. However, Export oriented stocks like Pharma and IT were hit hard on weak rupee," said K K Kavikondala, CEO, WealthRays Securities.
The landslide victory of BJP-led NDA in polls is credit positive for India as a stable central government is expected to address economic challenges, a Moody's report on Monday. Besides, reports said a clutch of foreign brokerages like Nomura and Goldman Sachs have upgraded Sensex/Nifty targets.
Stocks of power companies, led by 10.35% surge in NTPC, were the star performers of the day. Bhel zoomed 16.94% on signing a pact with Indonesian firm to set up a power plant. Coal India sprinted nearly 13%.
BSE Power index gained a whopping 10.15%. JP Power, NHPC, Adani Power, BHEL, GMR, Power Grid Corp., Torrent Power and Siemens ended up to 30% higher.
The sectoral barometer was followed by 8.34% rise in BSE Capital Goods, 6.91% jump in BSE Realty and 6.81% spike in BSE Metal.
However, broader benchmark gains were capped as IT exporters led by Infosys, TCS and Wipro lost sizeable grounds as the rupee strengthened against the American currency, dragging the IT sector indices down by 4.95%.