Raging bulls break new ground

Indices hit new records as President's speech stirs sentiment by detailing positive road map for new govt

The stock market witnessed a new all time high on Monday on positive sentiment following the President's speech which spelt out the road map for the new government.

The S&P BSE Sensex was up 183.75 points or 0.72 per cent to close at 25,580.21. This is the second time in a row that it has closed at a record high. The index had closed at 25,396.46 on Friday. The National Stock Exchange's CNX Nifty closed at 7,654.60, also an all-time high.

"The President's speech laid out the priorities for the government and the clarity has given a further impetus to the market. There was an emphasis on prioritising growth recovery through reigniting the investment cycle and job creation," said Rajesh Cheruvu, chief investment officer, RBS Private Banking India.

Eleven of the BSE's 12 sectoral indices ended with gains. Realty stocks rose the most on Monday, with an index tracking the sector up 6.01 per cent. Realty majors DLF and Unitech were up 3.54 per cent and 16.85 per cent respectively.

"There are expectations of foreign direct investment in the real estate sector which has been buoying these stocks," said Manish Sonthalia, senior vice-president and head, equity portfolio management services at Motilal Oswal Asset Management Company.

Indices tracking capital goods and power were up 2.48 per cent and 2.26 per cent, respectively. The oil and gas index was down 0.47 per cent on profit-booking.

The NSE India VIX, whose movements reflect trader expectations of market volatility, was up 6.96 per cent. Market breadth was positive with more than three advances for every stock that declined on the BSE.

Trading turnover or volumes were also up on Monday, compared to prior period averages. Trades worth Rs 2.68 lakh crore were executed on the stock exchanges on Monday. This is 16.18 per cent higher than the previous one month average.

Foreign investors were net buyers by Rs 536.68 crore on Monday, according to provisional exchange figures. Domestic institutional investors were net sellers by Rs 490.03 crore, it said.

"Markets could maintain some momentum till the budget, but a correction cannot be ruled," said Sonthalia.

Coal India, Bajaj Auto and Larsen & Toubro were amongst the key gainers on Monday. They were up between three and six per cent. Oil and Natural Gas Corporation was down 2.31 per cent. Hindustan Unilever was down 0.99 per cent while State Bank of India fell 1.05 per cent.