Heavy buying from foreign institutional investors (FIIs) on hopes of a Narendra Modi-led BJP Government assuming power at the Centre pushed the benchmark Sensex to a new all-time high. After a week of turbulent trading, Sensex on Friday skyrocketed by 650.19 points to breach the crucial 23,000-level for the first time.
As per the market experts, Indian equity markets surged after frenzied buying by FIIs in bank, real estate, power, refinery and capital goods sectors. Experts added that this heavy FII buying was primarily triggered on “near certainty” of the BJP forming a stable Government at the Centre.
Sensex touched a new record high of 23,048.49, but corrected a little before ending this session. The index also reported its highest closing ever of 22,994.23 with a gain of 650.19 points, the biggest gain in almost eight months. On September 19, 2013, the barometer soared over 684 points.
The previous all-time high record for the Sensex was 22,939.31, recorded on April 25. Nifty, the broader index, also set a historic high of 6,871.35 but ended at 6,858.80, after a gain of 198.95 points, this session.
Experts feel that the with the macro situation showing improvement and the fiscal deficit under control, the stage is tailor made for a new Government to give desired push to the economy. The corporate sector hopes that a Modi-led Government will unshackle the economy and go for radical reform in power, infrastructure and financial sectors that can create an investment friendly ambience and strengthen the Indian rupee, too.
Meanwhile, the rupee managed to end with a gain of three paise at Rs 60.04 per dollar. Domestic currency started the session slightly lower at Rs 60.09 per dollar but it recovered to an intra-day high of Rs 59.92 per dollar on persistent selling of the US currency by banks and exporters in view of sustained foreign capital inflows into equity markets.
As per forex experts, strong overseas dollar restricted the rise in domestic currency. The dollar index was up by 0.27 per cent against its major global rivals. The rupee remained firm against the pound to end at Rs 101.33 per pound and also strengthened further against the euro to Rs 82.77 per euro.
On Sensex, of the 30 stocks comprising the index, 27 shares advanced while only three declined. ICICI Bank was the biggest gainer and surged by 6.63 per cent. Tata Power, Hindalco, HDFC Bank, BHEl and Coal India, all ended the session with gains over 5 per cent. Axis Bank, ONGC, Maruti Suzuki and HDFC jumped by over 4 per cent. loss was registered by Dr Reddy’s, TCS and Sun Pharmaceutical only as they slid by 0.84 per cent, 0.19 per cent and 0.13 per cent respectively.
Among the 12 sectoral indices, 10 advanced while two declined. Among gainers, bank index rose the most by 5.34 per cent, followed by real estate, power, oil & gas and consumer goods indices as they surged by 4.38 per cent, 4.12 per cent, 3.44 per cent and 3.34 per cent respectively. Small-cap and Mid-cap indices also rose by 0.72 per cent and 1.47 per cent respectively on good demand from retail investors.
As per the provisional data provided by the stock exchanges, FIIs invested Rs 1,268.78 crore in stock markets on Friday. The market breadth also turned positive as 1,610 stocks finished with gains, 1,146 stocks ended with losses while 146 ruled steady.
The total turnover also rose to Rs 3,238.55 crores from Rs 2,299.87 crores on Thursday.