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Sensex, Nifty hit new highs on robust fund inflows, Budget hopes

SensexTracking global rally triggered by ECB stimulus measures, the benchmark BSE Sensex on Friday set a new high of 29,408 points and NSE Nifty breached the 8,800-level for the first time as robust capital inflows continued amid sustained optimism over upcoming Budget.

The 30-share index, however, pared some gains on profit-booking before settling the day at all-time closing high of 29,278.84, up 272.82, or 0.94 per cent, from its previous close, completing gains for the seventh straight day.

The 50-share Nifty rose by 74.20 points or 0.85 per cent to end at all-time closing high of 8,835.60 after hitting of 8,866.40 intra-day.

Powered by buying across the board the indices also recorded their best weekly gains in eight months.

The BSE barometer has gained by 1,932.02 points or 7.06 per cent in the seven days on robust fund inflows.

Tata Power shot up 6.86 per cent, the best among Sensex scrips. Tata Motors rose 3.81 per cent and Bharti Airtel 3.72 per cent. Cipla at 3.15 per cent, Larsen at 2.58 per cent were other major gainers.

However, Gail India fell by 1.80 per cent and BHEL 1.67 per cent and ONGC 1.09 per cent.

The European Central Bank (ECB) announced stimulus measures to support the ailing economy. The ECB said it would buy assets worth 60 billion euros every month up to the month of September 2016.

“The size of the stimulus was greater than market expectations … Markets sensed greater liquidity which is more likely to find its way through emerging markets like India,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

Brokers said positive investor sentiment in view of pre-budget optimism also helped the equities attract fund inflows.

Foreign portfolio investors (FPIs) continued their buying spree yesterday as they bought shares worth a net Rs. 592.79 crore, as per provisional data.

“The remaining part of the quarterly results as well as budget expectations will drive markets and specific stocks over the next one month.

“Strong action of the fiscal reforms front will lead to further rate cuts from the RBI and help in overall improvement of growth rates and profitability,” said Dipen Shah, Head, Private Client Group Research, Kotak Securities.

Among BSE sectoral indices, auto was up 1.51 per cent, followed by realty at 1.48 per cent, capital goods 1.32 per cent, Power 1.17 per cent, Metal 0.86 per cent and Bankex 0.86 per cent.

Profit-booking at higher level was also witnessed in front due to overbought situation, said Alex Mathews, Head Research, Geojit BNP Paribas Financial Services.

Small-cap and mid-cap indices moved down by 0.73 per cent and 0.14 per cent on fresh selling by retail investors.

As a result, total market breadth remained negative as 1,802 stocks ended in the red, 1,140 closed in the green and 100 ruled steady. Total turnover rose to Rs. 4,032.25 crores from Rs. 3,553.11 crores.

Asian markets ended higher after ECB’s stimulus move. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan ended higher by 0.25-1.34 per cent.

European stocks extended their new-year rally as investors cheered the ECB measures. Key benchmark indices in UK, France and Germany were trading higher by 0.37 1.40 per cent.

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