Dream run: Capital inflows fuel Sensex, Nifty to record highs

Indian markets continued their dream run on the back of capital inflows with the Sensex today gaining for the sixth day as it rose 78 points to end at new closing peak of 26,638.11, wrapping up the seventh straight month of gains in August.
The NSE Nifty index rose by 18 points to a fresh closing high of 7,954.35 as stocks inched northwards on hectic activity on expiry day of monthly derivative contracts, despite weak global cues in form of rising tension in Ukraine.
Brokers said investors continued to focus on the series of steps taken by the Modi government to boost the economy and attract FDI. Buying was mainly seen in capital goods, refinery and FMCG stocks while realty, metal and IT shares fell.

The BSE 30-share index resumed higher and moved in a narrow range throughout the day in positive terrain before settling up 77.96 points, or 0.29 per cent, at new closing peak of 26,638.11. Intra-day, it hit life high of 26,674.38.
At closing level, the index surpassed its previous closing peak of 26,560.15 hit yesterday.
In six days of continuous rise, Sensex has gained 324 points. For the month (August), the index rose 743 points, or 2.8 per cent. This is its seventh consecutive monthly gain.

The CNX 50-share Nifty also rose by 18.30 points, or 0.23 per cent, to close at new closing peak at 7,954.35 after hitting intra-day high of 7,967.80. Its previous closing peak was 7,936.05 hit yesterday.

All eyes are now on GDP April-June quarter data scheduled for release tomorrow, a market holiday on account of Ganesh Chaturthi. The Sensex and the Nifty have gained about 26 per cent this year so far, the most among big global indices.
Rail stocks were in demand today after government notified liberalised FDI norms for the sector. Shares of Texmaco Rail, Titagarh Wagons and Kalindee Rail Nirman rose.
"Buying in index heavyweights like ICICI Bank, ITC, LT and HDFC Bank kept markets higher. Expiry for Futures and Options contracts for August month kept volatility towards the higher end. Global markets, however, were muted...," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.

Asian markets mostly fell Thursday, with investors unable to build on the previous day's advances after the S&P on Wall Street notched up another record. European stock markets sank in early trade as investors worried over reports of increased tension in war-torn Ukraine.