With the rate cut hope by Reserve Bank of India (RBI) on macro numbers, Dalal Street opened on a firm note and hit fresh record highs on Thursday. Stock markets stayed strongly bullish on Thursday till the end of the trading session due to positive sentiments of investors following historically-low monthly consumer inflation data which was released on Wednesday. For the first time, the BSE benchmark Sensex crossed the 32,000-mark, surging over 232 points and, while Nifty also closed at a new peak 9,892, offering scope for the RBI to reduce key policy rates.
The 30-share BSE index took 33 sessions to rise 1,000 points before it finally went beyond the psychologically significant 32,000. Higher Asian and European stocks also provided fodder after the US Fed chief, in a House testimony, signalled that the approach to higher rates will be steady, prompting investors here to buy more.
Bolstering its upward trend for the second session, the Rupee on Thursday also appreciated by another 9 paise to end at an over three-week high of 64.45 amid unabated rise in domestic equities. The domestic currency had logged its previous best of 64.43 against the US dollar on June 19.
Retail inflation for June hit a historically low 1.54 per cent and industrial output growth for May slumped to 1.7 per cent, boosting chances of a rate reduction by the RBI at its upcoming August policy meet. The macro numbers were released after market hours on Wednesday.
The BSE Sensex settled at a new peak of 32,037.38, up 232.56 points, or 0.73 per cent. It surpassed its previous record of 31,804.82 touched on Wednesday. In past four days, the index had gained 676.75 points.
The broader 50-issue NSE Nifty spurted 75.60 points, or 0.77 per cent, to close at fresh lifetime high of 9,891.70, bettering its earlier record 9,816.10 hit on Wednesday.Both indices rose for the fourth consecutive session.
ITC emerged as the top gainer by rising 3.03 per cent. Bharti Airtel, ICICI Bank and Sun Pharma rose up to 1.84 per cent. The largest IT exporter, TCS, firmed up 0.20 per cent ahead of its June quarterly earnings on Thursday.
Traders said ample liquidity in the market is driving the current phase of the rally amid optimism over earnings from blue-chip companies. Consumer goods and banking stocks had a good day. The FMCG index rose the most by surging 1.58 per cent, followed by capital goods and banking.
Foreign investors have been supporting the ongoing rally by pumping in sizeable money into domestic markets. Foreign portfolio investors (FPIs) bought shares worth a net Rs 361.25 crore yesterday while domestic institutional investors (DIIs) sold shares worth a net Rs 330.58 crore, showed provisional data. Buying activity also rubbed off on broader markets, with mid-cap and small-cap indices ruling up.