Markets scale new peaks on RIL push; IMF forecast buoys sentiment

Benchmarks rallied to fresh lifetime highs today on persistent investor appetite for market heavyweight RIL, while the broader buying momentum got a fillip after IMF underlined India's role as a source of global growth.

The BSE Sensex vaulted 221.76 points to close at a new peak of 37,887.56. The broader NSE Nifty extended its record-setting run for the fourth session and finished above the 11,400-mark for the first time.

Sentiment was buoyed after the IMF said India will be a source of growth for the global economy for the next few decades and it could be what China was for the world economy, even as it suggested more structural reforms.

Sustained FII inflows and fresh spell of buying by domestic institutional investors fuelled the rally, brokers said.

Encouraging first quarter earnings and mixed trend in global markets, with US stocks approaching fresh all-time highs, too bolstered sentiment, they added.

Reliance Industries witnessed heavy buying and spurted 2.85 per cent to close at a fresh high of Rs 1,217.25.

The 30-share Sensex, after a cautious start, gathered momentum and rallied to 37,931.42, before finally ending at 37,887.56, a rise of 221.76 points, or 0.59 per cent.

It broke its previous closing record of 37,691.89 hit on August 6.

The broader NSE Nifty advanced 60.55 points or 0.53 per cent to 11,450, surpassing its previous closing high of 11,389.45 hit yesterday.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 314.83 crore, while domestic institutional investors (DIIs) sold equities worth Rs 319.90 crore yesterday, provisional data showed.

"After a muted start, market scaled a new high on account of increase in FII inflow and in-line quarter earnings. Strong domestic triggers will continue to add room to outlook, whereas factors like volatility in oil price and rupee may delay the pace of rally.

"Global markets were mixed as investors continue to stay cautious due to lingering concerns on US trade tensions." said Vinod Nair, Head of Research, Geojit Financial Services.

ONGC was the top performer among the Sensex constituents, rising 2.87 per cent, followed by RIL.

Other gainers were ICCI Bank 1.63 per cent, SBI 1.53 per cent, HUL 1.33 per cent, Tata Motors 1.25 per cent and Bharti Airtel 0.85 per cent, among others.

On the other hand, Maruti Suzuki declined 1.99 per cent, Bajaj Auto 0.96 per cent, Vedanta 0.90 per cent, NTPC 0.57 per cent, Infosys 0.47 per cent, ITC 0.22 per cent and Hero MotoCorp 0.12 per cent.

Among sectoral indices, the BSE energy index rose 1.86 per cent, followed by telecom 1.71 per cent, consumer durables 1.25 per cent, bankex 0.78 per cent, oil and gas 0.72 per cent, capital goods 0.38 per cent, FMCG 0.33 per cent, metal 0.30 per cent, PSU 0.21 per cent and teck 0.06 per cent.

Healthcare, power, auto, IT, infrastructure and realty indices ended in the red, falling up to 0.33 per cent.

In the broader markets, the BSE mid-cap and small-cap indices gained 0.16 per cent and 0.03 per cent, respectively.

Mahindra & Mahindra rose 0.19 per cent after the company yesterday posted a 67 per cent rise in net profit at Rs 1,257 crore for the June quarter.

Coming to the global markets, Asian equities ended mixed as investors looked past protectionism tussles and focused on US stocks approaching fresh all-time highs.

Hong Kong's Hang Seng moved up 0.39 per cent, Taiwan rose 0.84 per cent, while China's Shanghai Composite Index fell 1.27 per cent and Japan's Nikkei shed 0.08 per cent.

In the Eurozone, Frankfurt's DAX fell 0.10 per cent and Paris CAC declined 0.09 per cent in their late morning deals. London's FTSE, however, gained 0.69 per cent.

US stocks closed higher yesterday as investors focused on positive corporate earnings.