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Pvt banks propel Sensex, Nifty to life-time highs; Infy, Tata Motors fall

BSE benchmark index gained 370 points to 39,276 while the NSE index climbed 97 points to 11,787

Samie Modak  |  Mumbai 

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The markets are also factoring in the re-election of Prime Minister Narendra Modi in the general election

The benchmark indices hit all-time highs on Tuesday led by gains in heavyweights like and Supportive and better by the India Meteorological Department helped with the risk-on sentiment.

Gaining for a fourth straight day, the 30-share rose 370 points, or 0.95 per cent, to end at 39,276, surpassing its previous high touched earlier this month. The Nifty50 index gained 97 points, or 0.83 per cent, to end at 11,787, going past its previous high of 11,739 touched on August 28 last year.

led the advances after Goldman Sachs said in a note that the decline in credit costs would boost growth for private sector lenders such as and The shares of IndusInd Bank and jumped nearly 4 per cent each, while gained around 1 per cent. The three lenders made 163-point contribution to the gains.

Power Grid, Infosys, and Tata Motors were the only three losing stocks on the

A surge in foreign institutional investors (FIIs) flows has lifted the benchmark indices by over 11 per cent from its 2019 lows in February. Overseas investors have pumped in nearly Rs 65,000 crore ($9.2 billion) into since February 20, a day after the domestic hit yearly low. On February 19, the Sensex had ended at 35,252, while the had closed at 10,604.

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On Tuesday, FIIs bought shares worth Rs 1,039 crore, the provisional data provided by the showed. Most emerging have seen a gush in amid a drop in and the dollar.

This comes after the announced a pause in interest-rate increase to counter the slowing economic growth. Besides sustained buying by FIIs, earnings growth optimism and hopes of political continuity have helped investor sentiment.

“The current rally is largely due to favourable global cues, with the US Fed adopting a dovish monetary policy ruling out policy rate hikes this year and even possible rate cuts in 2020.

The markets are also factoring in the re-election of Prime Minister Narendra Modi in the general election, with most opinion polls suggesting the same,” says a note by Chola Securities.

“The fundamentals, however, remain far from rosy given the rising crude prices, continued weakness in automobile and other consumer durable sectors and weak GDP growth.”

Brent Crude prices have risen by more than 35 per cent to nearly $71 per barrel so far in 2019. Some analysts are forecasting Brent to go fast $80 a barrel due to geopolitical issues, supply cut, and falling inventories.

Experts say while could sustain due to benign global liquidity conditions, a spike in oil prices, earnings disappointment or election surprise could spoil the party for the Indian markets.

First Published: Wed, April 17 2019. 00:43 IST
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