The Sensex on Thursday logged fresh all-time highs for the second consecutive session, while the Nifty ended above 12,000 for the first time since June 4. Market players said that better-than-expected earnings and strong overseas flows buoyed investor sentiment, even though several economic parameters have shown deterioration.
The Sensex gained 0.5 per cent, or 184 points, to end at 40,654, while the Nifty added 50 points, or 0.42 per cent, to close at 12,016 — 73 points below its last all-time high.
“Most of the Nifty firms’ results exceeded or matched expectations, which also increased optimism in the investor community, thus, minimising downside for the market,” said Shrikant Chouhan, analyst (technical research), Kotak Securities. “Momentum is building on the upside with wide participation, which is a good sign,” said Manav Chopra, head (equity research), Indiabulls Ventures, wrote in a note on Wednesday, adding, “Traders should look at dips as buying opportunities.”
Foreign investors have bought stocks worth $323 million this month, after pumping in above $2 billion in the previous month. On Thursday, several realty and housing finance stocks rallied after the government approved a Rs 10,000-crore package to help clear stalled housing projects. Indiabulls Housing Finance surged nearly 20 per cent in intra-day trade.
Technical analysts say the Sensex’s 50-day moving average last week crossed above its 200-day line to form a so-called golden cross, a bullish indicator.
Thirteen of 19 sector sub-indexes compiled by BSE advanced, led by a gauge of metal companies.
Twenty-two out of 35 Nifty 50 firms that have reported quarterly earnings so far this season have beaten or matched the average analyst estimate. Two companies didn’t have enough projections, while one was incomparable.