Expectations of strong corporate numbers, renewed inflows from foreign investors and a firm trend in the Asian markets pushed the benchmark Sensex to a record high on Thursday that also saw Reliance Industries (RIL) re-entering the $100 billion market capitalisation club.
The 30-share Sensex rose 282.48 points, or 0.78%, to close at a record 36,548.41 as banking and energy stocks led the surge.
The Sensex has now gained almost 1,000 points in the last five sessions.
“Markets have crossed all- time highs on the back of global cues as well as solid start to earnings season with TCS beating expectations,” said Gautam Duggad, head of research, Motilal Oswal Institutional Equities.
‘Higher volatility’
“We expect the markets to remain in a tight range albeit with higher volatility in 2018 given the busy political calendar ahead,” he said.
The broader Nifty of the National Stock Exchange (NSE) ended the day above the 11,000-mark at 11,023.20 gaining 74.90 points, or 0.68%. RIL was the top gainer in the Sensex pack, gaining 4.42%, or Rs. 45.85, to close at Rs. 1,082.20. It also became the second Indian firm to cross $100-billion mark in market capitalisation, in recent months, after TCS. Interestingly, RIL had first touched this milestone on October 29, 2007.
Deepak Jasani, head retail research, HDFC Securities, said investors had been enthusiastic ever since the company announced its vision at the annual general meeting (AGM).
‘Enthused by RIL vision’
“Investors seem to be enthused by the vision pronounced by the chairman at the AGM of a strategic move to a technology platform company with three key verticals of mobile connectivity, fibre connectivity and new commerce platform for the retail business,” he said.
Meanwhile, foreign investors seem to have reversed their selling trend seen in the last three months. In July, overseas investors had been net buyers at almost Rs. 1,500 crore.
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