Markets hit fresh highs as telecom, PSU stocks gain, Sensex near 59K

Nifty adds 139 points and ends session at 17,519, up 0.8 per cent. Both the indices surpass their previous record close made on September 9

The Indian markets hit fresh record highs on Wednesday amid rally a tally in telecom and public sector undertaking (PSU) stocks, with benchmark Sensex’s notching up its 41st record close for the year.

The benchmark Sensex rose 476 points, or 0.8 per cent, to end the session at 58,723. The Nifty, on the other hand, rose 139 points and ended the session at 17,519, a gain of 0.8 per cent. Both the indices surpassed their previous record close made on September 9.

Shares of Bharti Airtel rallied 4.5 per cent, while index heavyweight Reliance Industries rose 0.5 per cent after the government’s relief package for the telecom sector was seen benefiting them.

PSU stocks were among other major gainers with NTPC rally 7.2 per cent—most among Sensex components. Coal India rose 4.6 per cent and ONGC too gained close to 4 per cent.

Most Asian and European markets traded negative.

"The fact that the breadth of the market has improved sharply over the last few days and that Nifty has moved up against negative global headwinds is reassuring. This could mean that India as a market could be less impacted by global turmoil going forward," said Dhiraj Relli, MD, HDFC Securities.

The US inflation data on Tuesday showed that consumer prices rose 0.3 per cent in August from July, a fall from the previous month-on-month rise. Investors cheered the data as it reduced the prospects of the US Federal Reserve raising interest rate. The dollar weakened against major peers as investors

Global investors seem wary of the impact of the delta virus variant and rising costs on economic reopening, as well as China's crackdown on private industries.

Asian stocks fell amidst weak Chinese economic data in August due to stringent virus controls and news reports that China's Evergrande group will not be able to make interest payments on Monday. Investors worry that a debt restructuring could lead to further volatility in markets.

"Global cues continued to be weak as slowdown in US consumer inflation failed to overcome concerns about the fast-spreading Delta variant, resulting in slowed economic growth and pandemic-related shortages of labour and supplies continued to drive up prices,' said Siddhartha Khemka, head of retail research, Motilal Oswal.

"The US Fed and the ECB's decision with regards to stimulus tapering plans are the most awaited decisions and would keep the markets oscillating. Metals and oil prices along with FII flows would also continue to influence the market. Valuations too are rich and hence could lead to bouts of profit booking. But the overall sentiment in the domestic market remains positive, as controlled Covid cases domestically and strong pick up in vaccination drive has led to a healthy pick-up in economic activities, thus reflecting in continuous improvement of macro data points and positive earnings expectation," said Khemka.

The market breadth was positive, with 2,033 stocks advancing and 1,262 declining. Overseas investors bought shares worth Rs 233 crore on Wednesday.

--with agency inputs