Ahead of Diwali, markets on Monday cheered the investors as both the equity indices closed at record highs due to positive macro data and encouraging comments by the IMF chief on India’s economy. The 30-share index scaled an all-time high of 32,687.32 in early trade before ending up by 200.95 points at 32,633.64, the highest closing level so far. The broader NSE Nifty also zoomed past the 10,200-mark for the first time to hit an all-time high of 10,242.95 in early trade.
However, it pared some of gains to settle at record closing level of 10,230.85, up 63.40 points, or 0.62 per cent. It broke previous record high of 10,167.45, hit on October 13. Besides, the rupee also fuelled the rally, appreciating further to 64.68 against the dollar intra-day at the forex market too fuelled the rally. Unabated buying by domestic institutional investors (DIIs) helped the key indices scale new highs due to wholesale inflation softening to 2.6 per cent in September from 3.24 per cent in August, and exports growing at six-month high rate of 25 per cent in the month enthused investors.
Besides, Dalal Street also got a lift, triggering all-round buying activity after IMF chief Christine lagarde's comments on Saturday, saying that the Indian economy is on a ‘very solid track’ in the mid-term. However, brokers said market sentiment was buoyant in a truncated trading week ahead of Diwali and encouraging Q2 earnings from oil-to-telecom conglomerate Reliance Industries.
“Optimism over Q2 earnings and positive global cues continued to drive market to fresh highs,” said Vinod Nair, Head of Research, Geojit Financial Services ltd. "Q2 results will gather significance in coming days with the earnings of Index heavyweights and decide the market’s momentum,’ Nair added.
A firming trend at other Asian markets and a higher opening of European shares tracking gains across the US and Asia as investors bet on another strong earnings season, also boosted sentiments. In the euro zone, stock exchanges in Frankfurt and Paris were up by 0.20 per cent each in early trade. london's FTSE also rose 0.30 per cent.