Markets hit record highs; Sensex tops 24,000

Markets scaled record highs for the third day with the Sensex topping 24,000 led by capital goods shares

Markets touched fresh all-time highs for the third day with the Sensex topping 24,000 led by capital goods shares and index heavyweights. Markets have been on fire ever since the exit polls indicated that the BJP-led NDA would form the government and kick start reforms to stimulate growth.

At 11:50, the 30-share Sensex was up 440 points at 23,991 after hitting an intra-day high of 24,069 and the 50-share Nifty was up 136 points at 7,150.

The Indian rupee also gained sharply against the dollar after exit polls showed that the BJP-led NDA would form the government at the centre. Further, the sharp gains in equities and foreign fund inflows also helped improve sentiment. The rupee was trading higher at Rs 59.91 against the previous close of Rs 60.05.

Asian markets were trading higher, shrugging off the events in Ukraine, tracking overnight gains in the US stock markets which saw both the Dow Jones and S&P 500 ending at record highs. Further, sharp gains in Indian equities with the reform-oriented BJP-led NDA set to form the government also helped improve sentiment. The Nikkei was up 1.8%, Hang Seng gained 0.3% while Shanghai Composite was down 0.3%.

Capital Goods, Power, Consumer Durables indices were up over 4% each leading the sectoral indices on the BSE. Other gainers include, Bankex, Realty, Oil and Gas, Metal, Auto and IT indices up 1.7-2.6% each.

Capital goods shares were up on hopes that the reform-oriented BJP-led NDA would unveil the reform process that would ultimately lead to new order inflows. L&T was up 3.2% at Rs 1,432 and BHEL was up 13.3% at Rs 225.

Among the index heavyweights Reliance Ind was up 2.3% at Rs 1,052, Infosys gained 1.9% to Rs 3,239, ONGC was up 4% at Rs 373.

Financials continue to edge hire on hopes that credit growth would pick up after the BJP-led NDA forms the government. SBI, ICICI Bank, HDFC 1.5-3% each.

Auto shares were also among the top gainers led by Tata Motors after encouraging April sales from its arm JLR followed by Mah&Mah.

State-owned oil marketing companies gained after they hiked diesel prices by Rs 1.09 per litre. IOC, BPCL and HPCL were up 2-3% each.

In the broader market, the BSE Mid-cap index and Small-cap index was up 1.7-1.9% each.

Market breadth was strong with 1,504 gainers and 890 losers on the BSE.