Sensex hits 29,000, Nifty at 52-week high ahead of Feb F&O expiry

S&P BSE Midcap and Smallcap indices mirrored the gains in frontline indices to rise 0.3% each

The benchmark indices on Thursday extended gains even as Asian markets slipped from their 19-month highs after minutes of US Federal Reserve's last monetary policy suggested many policymakers believe interest rates should be increased "fairly soon". 

At 01:33 pm, the S&P BSE Sensex was trading at 29,008, up 143 points, while the broader Nifty50 was ruling at 8,971, up 44 points. 

In the broader market, the S&P BSE Midcap and Smallcap indices mirrored the gains in frontline indices and rose 0.4% each.

"8,905-8,874 would provide a decent support to Nifty; whereas on the flipside, 8,969 remains to be an immediate hurdle. Surpassing this level would unfold possibility of a new high soon, however, tomorrow’s session being a February month derivatives expiry; we would expect some volatility in the market. Also, we hope this series to conclude at a new 52-week high," said brokerage Angel Broking in a technical note.  

Buzzing stocks

Bharti Airtel stock hogged the limelight. It rose over 10% to hit its 52-week high of Rs 400 after the telecom major said it would buy Telenor (India) Communications, in a deal that will bolster Airtel's footprint with additional spectrum in the 1800 MHz band. It was the top mover on Sensex and Nifty both. 

Reliance Industries extended gains by nearly 1% to Rs 1,219 after over 11% rise in Wednesday's trade. 

NTPC slipped over 1% to Rs 164 after the company informed bourses that the 115 MW out of 260 MW of Bhadla Solar Power Project of the company has been commissioned. 

Fed minutes

Many Federal Reserve policymakers said it may be appropriate to raise interest rates again "fairly soon" should jobs and inflation data come in line with expectations, according to the minutes of the Fed's last policy meeting released on Wednesday.

The minutes of the January 31-February 1 discussion, at which the Fed voted to keep rates unchanged, also showed the depth of uncertainty at the Fed because of a lack of clarity on the new Trump administration's economic program.

Fed Governor Jerome Powell, one of the voting members at the central bank's last policy meeting, said on Wednesday a rate hike would be on the table at the Fed's next meeting in March.

Global markets

Among Asian markets, MSCI's broadest index of Asia-Pacific shares outside Japan was fractionally lower. Japan's Nikkei slid 0.1%, while Australian shares retreated 0.3%. China's Shanghai Composite and Hong Kong's Hang Seng index were also down 0.3% each. 

On Wall Street, the Dow ended up 32.6 points, or 0.16%, at 20,775.6, the S&P 500 closed down 2.56 points, or 0.11%, at 2,362.82 and the Nasdaq Composite finished down 5.32 points, or 0.09%, to 5,860.63.

The Dow reached its ninth straight all-time closing high.

(With inputs from Reuters)