Sensex hits all-time high of 40,392, Nifty trading above 11,900: 10 things to know

Sensex hit its all-time high of 40,392 today surpassing its earlier record of 40,312 hit on June 4. Nifty also hit a new high of 11,927, which is 176 points short of its all-time high of 12,103 hit on June 3. A rate cut by US Federal Reserve, massive FII inflows of Rs 7,192.42 crore on Wednesday, positive sentiments arising out of Q2 earnings and buzz around restructuring of taxes for investors pushed the benchmark indices to fresh highs today. While Sensex has rallied 1,677 points this month, Nifty has seen a gain of 453 points. Sensex has rallied 11.54% since the beginning of this year with Nifty logging 9.56% gain during the period.

Here's a look at 10 updates around today's rally.

1. Gains in information technology and banking sector stocks led the rally today. While BSE bankex rose 212 points to 34,049, BSE information technology index gained 324 points to 15,452.

2. Market breadth was positive with 1,393 stocks rising against 870 falling on BSE. 126 stocks were unchanged.

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3. Of 30 Sensex stocks, 20 traded in the green.  Infosys, SBI, Tata  Motors, Sun Pharma, Kotak Bank were the top  Sensex gainers. Umesh Mehta, Head of Research at Samco Securities said, "With an additional economic boost by the Government in terms of tax, the consumption and auto space will pick up momentum. Metals and pharma sectors can also be looked at from a valuation perspective. Broader markets too saw some green offshoots after over a year's decline which further aids our conviction of an upward movement by Sensex, but investors must be watchful as there are a lot of uncertainties on the trade. With so many positives surrounding the markets, Sensex is likely to continue its rally and touch levels of 42,800 by next Samvat, unless the trade tensions intensify and the Brexit deal goes kaput."

4. BSE bankex rose 253 points to 34,091 against previous close of 33,837. SBI was the top index gainer after SBI share price rose the most in early trade today. Analysts gave a thumbs up to the lender's strong Q2 earnings as it set off losses from one-time gain of Rs 3,500 crore from sale of SBI Life Insurance shares. The lender also raised provisions coverage to more than 80 per cent, the highest in more than a decade. SBI share price rose 4.24% or 12 points to Rs 302.25 compared to the previous close of Rs 289.95 on BSE. On NSE, the stock rose up to 4.31% to Rs 302.45 against previous close of Rs 289.90.

Also read: Why SBI share price has gained over 15% in four trading sessions

5. Massive foreign fund inflows too boosted investor sentiment. Foreign institutional investors purchased a whopping Rs 7,192.42 crore in the capital market, on Wednesday, while domestic institutional investors sold shares worth Rs 185.87 crore, data available with stock exchange showed.

6. BSE mid cap and small cap indices gained 121 and 145 points, respectively.

7. Top gainers on Nifty were Zee Entertainment (9.06%), SBI (4.90% ) and Infosys (4.86%).  On Nifty, 36 stocks advanced and 14 stocks were in a downfall. Ajit Mishra, Vice President, Research at Religare Broking said, "We believe in-line Q2FY20 earnings so far and positive outlook by key auto and banking players have lifted the investor sentiments. On the global front, US Fed rate cut of 25bps and better than expected US GDP numbers for the third quarter seem to have provided some relief to investors' concern over economic slowdown. However, going forward consolidation cannot be ruled out given the near-peak level of the markets."

8. "Sentiments have turned recently, most results are decent and there have not been any disappointments so far," news agency Reuters quoted Siddhartha Khemka, head of retail research at Motilal Oswal Securities, as saying.

9. Since today is the derivatives expiry day, indices are likely to see some volatility later in the day ahead of the expiration of October futures & options contracts.

10.  Most Asian stock markets followed Wall Street higher today after the Federal Reserve cut a key interest rate.  Tokyo, Hong Kong and Seoul advanced. Shanghai retreated 0.1% after Chinese factory activity weakened more than expected in October. Investors welcomed the Fed's third rate cut this year to shore up economic growth amid a bruising US-China trade war.

The Fed indicated it won't cut rates again unless the outlook worsens. Tokyo's Nikkei 225 rose 0.4% to 22,932.27 and Hong Kong's Hang Seng gained 1% to 26,948.79. South Korea's Kospi added 0.4% to 2,090.45. On Wall Street, the benchmark S&P 500 rose 0.3% to 3,046.77, hitting a record for the second time this week. The Dow Jones Industrial Average gained 0.4% to 27,186.69. The Nasdaq composite added 0.3% to 8,303.98. With its latest rate cut, the Fed has nearly reversed four rate hikes made in 2018.