The BSE Sensex has just set a new record - it crossed the 37000-mark earlier this morning for the first time. This is the 20th time that the Sensex has scaled a new peak this year. The Nifty also climbed 40.20 points to hit life-time high of 11,172, surpassing its previous intra-day record of 11,171.55 hit on January 29.
Extending its record run for the fourth-day, the 30-share Sensex touched a new peak of 37026.18 today on widespread buying in capital goods, FMCG, realty and banking stocks amid heavy buying by domestic institutional investors and positive global cues.
The Sensex, however, lost some ground and closed at 36,984.64. Factors like the strengthening rupee against the dollar, a normal monsoon so far, and short-covering of bets - since today is the last session of July expiry in the derivatives segment - also kept the overall market sentiment high.
Moreover, according to analysts, strong liquidity in the market following unabated buying by domestic institutional investors (DIIs) and encouraging Q1 earnings by some companies has further lifted the mood. On a net basis, DIIs bought shares worth Rs 97.64 crore while foreign portfolio investors sold shares worth Rs 1,195.75 crore yesterday, going by provisional data.
The local markets were also supported by gains in Asian stocks, which tracked climbing US shares courtesy positive developments on the trade front. Yesterday, US President Donald Trump announced that he had reached an agreement with European Commission President Jean-Claude Juncker to work towards a "zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods" situation. This, in essence, means that a potential transatlantic trade war has been averted.
The top gainers that helped Sensex scale its new peak were SBI, Bharti Airtel, Tata Motors, ITC, Coal India, L&T, ONGC, HDFC Bank, RIL, Maruti, M&M, Bajaj Auto, IndusInd Bank, Kotak Bank and HDFC, rising up to 1.79 per cent. On the other hand, Asian Paints, Hero MotoCorp, Wipro and Infosys were among the top losers, shedding up to 1 per cent.
There's more good news in store. Sanjiv Bhasin, EVP-Markets & Corporate Affairs at IIFL, for one, sees Nifty hitting 15,000 by next year. "Globally, India is in a very sweet spot, most macros are turning positive as far as bonds, rupee and oil are concerned. Corporate results are very pleasing as well. Even though it is a narrow rally and people may have doubted and missed it by being in the wrong stocks, if you can sit through the volatility, in the next three months, midcaps should give very good returns. In the next three years, one could see 30 per cent growth and hence, the target by next year's Diwali for Nifty is at 15,000," he told Moneycontrol, adding, "The only caveat is the general elections next year, which could stall the markets for a while. That would largely be a knee-jerk reaction and hence the target of 15K is till Diwali."(Edited by: Sushmita Choudhury; with PTI inputs)