Markets scale new highs

The BSE Sensex gained 0.3% to close at 31,109.28

The benchmark Nifty and Sensex clocked new record highs for a third consecutive trading session on Monday. The BSE Sensex gained 0.3 per cent to close at 31,109.28, while the Nifty advanced 0.1 per cent to close at 9,604.9. The gains were spurred by a rally in the shares of consumer goods stocks, with Hindustan Unilever gaining 3.1 per cent and ITC adding 2.4 per cent. Investors were seen lapping up consumer stocks as the tax rates under the goods and services tax (GST) are seen as favourable for these companies. A favourable monsoon outlook also added to the buoyant sentiment towards this space.

“The markets revived on announcement by India Meteorological Department of the timely arrival of southwest monsoons rains,” said Anupam Singhi, COO, William O'Neil India.

Meanwhile, shares of pharmaceutical companies continued to tumble. Sun Pharmaceutical fell 11.6 per cent to its lowest level since August 2013 after it warned investors of lower sales in the coming year. The BSE Healthcare index tumbled close to three per cent to its lowest level since August 2014. The broader market saw some selling pressure with the BSE Midcap index declining 1.03 per cent and the BSE Smallcap index falling 1.53 per cent.

“We might see further consolidation in Nifty; however, there'll be enough opportunities on stock specific front. We feel that pressure may continue in the mid-cap and small-cap space,” said Jayant Manglik, president, retail distribution, Religare Securities.