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HomeUncategorizedSensex, Nifty hit life highs on PM Modi’s Speech

Sensex, Nifty hit life highs on PM Modi’s Speech

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Nifty-hit-life-highsThe BSE Sensex and Nifty rose over 1 per cent on Monday to end at record highs as bluechips such as ICICI Bank and ONGC surged after Prime Minister Narendra Modi vowed to fire up the bureaucracy to deliver results, while easing wholesale inflation also helped.

The broader 50-share index rose as much as 1.14 per cent to 7,880.50, surpassing its previous all-time high of 7,840.95 hit on July 25. Similarly, the Sensex hit a new high of 26,413 during today’s session.

Delivering his first Independence Day speech, PM Modi emphasised the need for better governance but announced none of the sweeping market reforms that many who handed him India’s biggest election mandate in three decades have been awaiting.

India’s wholesale price inflation easing to a five-month low in July, just days after retail inflation accelerated to a two month-high of 7.96 per cent, helped.

Market analyst Sanjeev Bhasin said the market trend remains positive due to foreign inflows, lower global crude prices and a pullback in the rupee. Brent crude fell below $103 a barrel as Libya increased its oil output and as worries over supply from key producer Iraq eased. Markets also got a boost from foreign investors who bought Rs. 625 crore worth of Indian stocks on Thursday. Indian bond and currency markets are closed for a second consecutive session on Monday because of Janmashtami.

Despite the rally today, some analysts remain cautious. Anil Manghnani, director of Modern Shares & Stock Brokers, said he is not excited about the current leg of the rally. Defensive stocks are leading much of the gains among Nifty stocks and ideally broader markets have to turn around to sustain the rally, he added.

Among Nifty gainers, BPCL and ONGC rose over 5 per cent as traders hoped that lower global crude prices will ease their subsidy burden. Among banks, ICICI Bank and Axis Bank rose between 3-4 per cent. Some profit-taking was seen in IT shares. TCS, Infosys and HCL Tech were down nearly 0.5 per cent to 1 per cent.

The Sensex closed 287 points higher at 26,390 while Nifty settled at 7,874, up 82 points.

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