Fuelled by sustained heavy buying from foreign institutional investors (FII), the benchmark Sensex shot up to its all time high levels during Thursday's trading session. Sensex surged to its record high of 21,525.14 and ended the session at its highest closing levels of 21,513.87, up by 237.01 points. The broader index Nifty also registered its highest closing of 6,401.15, after rising by 72.50 points. Nifty closed the day, just 11 points shy of its all time high.
The rally was led by FII buying and reduction in the current account deficit (CAD), further helped in improving the overall sentiment, market experts added. While stock markets were breaching records, rupee zoomed 64 paise to end at almost a three-month high of Rs 61.11 per dollar. Commenting on the sharp appreciation in the currency, forex expert added, continued foreign funds inflow and persistent dollar selling by exporters and banks boosted the rupee value. The rupee ended at Rs 61.11 per dollar, a sharp rise of 64 paise, the biggest daily gain since November 18, 2013 when it rose 70 paise. The domestic currency closed at its three- month high since its closing at Rs 61.04 per dollar December 10, 2013.
Predicting this sharp rally, The Pioneer in an article published in the March 3, 2014 edition, had pointed out that soon the stock markets would try and breach their all time high levels. Sensex started the session with strong momentum and touched a new intra-day high of 21,525.14. The index surpassed its previous record closing of 21,373.66 set on January 23, 2014. In the last three sessions alone, Sensex has has surged by 567.22 points. Nifty also closed at an all-time high of 6,401.15, however, failed to breach its intra-day high of 6,415.25 registered on December 9, 2013. The Nifty's previous closing high of 6,363.90 was also made on December 9, 2013.
Narrowing of the CAD also helped support the rally and both foreign and domestic investors invested heavily in beaten down sectors the most, brokers added. As per the data released by the Government, CAD fell to $ 4.2 billion, or 0.9 per cent of GDP, in December quarter of 2013-14 on the back of rise in exports and fall in gold imports. FIIs, the main market driver, continued buying before the start of the general elections. As per the data provided by the stock exchanges, FIIs bought shares worth Rs 1,272.93 crore on Thursday. In the last two sessions, FIIs have invested over Rs 2,000 crore in the Indian equity markets.
Sectorally, of the 12 indices trading on BSE, healthcare index was the sole loser and it slid marginally by 0.27 per cent. The rally was led by real estate index as it surged by 4.09 per cent. Other gainers included power, oil & gas and metal indices which rose by 2.45 per cent, 2.23 per cent and 2.2 per cent respectively. Off the 30 stocks listed on Sensex, 24 advanced led by Hindalco and BHEl which surged by 4.33 per cent and 3.78 per cent respectively. Cipla was the biggest loser and fell by 1.38 per cent. On Nifty, 41 shares out of the 50 comprising scrips closed with gains.
Overall, total market breadth remained positive as 1,701 stocks closed in the green while 1,033 concluded in the red. Total turnover also rose further to Rs 2,692.06 crore from Rs 2,354.96 crore on Wednesday.