Mumbai: The equity markets soared to a record high on Wednesday as better than expected quarterly performance reported by India Inc and improving macro-economic fundamentals helped markets to continue with their winning momentum.
Extending its gain for the seventh straight session, the Sensex hit a life time high of 26,188.64 in intra-day trade amidst high bouts of volatility before ending the day at a new closing high of 26,147.33, gaining 121.53 points or 0.47 per cent.
Similarly, the Nifty scaled above its psychological 7,800 level for the first time and hit an all time high of 7,809.20 before ending the day at 7,795.75, gaining 27.90 points or 0.36 per cent. However, the broader market remained weak as 1,706 stocks traded on the Bombay Stock Exchange (BSE) closed in the red as compared to just 1,265 stocks that advanced.
According to Shshank Mehta, independent market analyst, the Nifty and Sensex are expected to rally higher as the July derivative series is nearing its expiry. “There were some amounts of short positions in few index heavyweights, which got covered on Wednesday. The index may inch even higher as we approach the expiry of the July derivative series next week before cooling off. So it would be prudent to book some profits at higher levels. While select few IT and banking sector stocks are trading at a record high, some of the PSU’s and capital goods stocks are now available at 10-15 per cent discount to their recent highs, which is a good opportunity for investors,” Mr Mehta added.
Overseas investors purchased shares worth Rs 652.40 crore on Wednesday, according to the provisional data from the stock exchanges. “The top line growth reported by leading listed firms was better than expected. Apart from corporate results, another positive factor for the domestic market is its improving macro-economic fundamentals. The global crude oil prices are correcting, inflation is coming down and IPP growth is showing signs of revival. If these trends continue, we can expect a big boost in corporate profitability going ahead,” said Gopal Agrawal, head of equity at Mirae Asset Global.
