Market update: Sensex, Nifty log fresh closing peak as WPI inflation falls

The benchmark Bombay Stock Exchange (BSE) Sensex surged to a new high, rising over 106 points to close at 28,046.66 after easing wholesale (or WPI) inflation, which cooled to a 5-year low in October, strengthened hopes of a rate cut while good earnings from bluechips like SBI boosted the sentiment.

Besides, robust buying by overseas investors and tumbling crude oil prices supported the strong momentum in stocks.

The 30-issue BSE barometer opened on a strong footing and continued its upward march to reclaim the key 28,000-mark and hit the day's high of 28,093.23 as buying picked up.

Brokers said, a firming trend at the other Asian markets and a mixed opening in Europe too influenced trading sentiments.

The broader 50-share National Stock Exchange (NSE) index Nifty spurted by 32.05 points (or 0.38 per cent) to close at new high of 8,389.90, surpassing itd previous closing peak of 8,383.30 hit on November 12.

After some profit-booking at record levels, the gauge settled at 28,046.66 to log a fresh record closing level, clocking a net gain of 106.02 points (or 0.38 per cent) over its previous close on Thursday.

Stock market indices have been hitting new highs after the government announced a slew of reform measures to boost the economy amid positive economic data.

Driven by softening prices of fuel and food items, the WPI inflation cooled to a five-year low of 1.77 per cent in October raising hopes of a rate cut by the Reserve Bank of India in December to boost economic growth.

"WPI for October is one of the lowest in recent years... Focus would again shift to global markets, progress on reforms and RBI monetary policy," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.

Public sector lender State Bank of India (SBI) reported a 30.5 per cent increase in net profit at Rs 3,100.41 crore for the September-quarter, pushing its shares up by 2.55 per cent.

Among metal stocks, Hindalco shares surged 3.59 per cent.

Other gainers that lifted indices to new highs included Coal India (CIL), GAIL, Bajaj Auto, HDFC Bank, Hero MotoCorp, Infosys, TCS, ICICI Bank and RIL. Of the 30 Sensex scrips, 21 closed up.

Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 690.61 crore on Thursday.

Sectorally, the BSE Metal index rose the most by 2.53 per cent, followed by Realty (2.35 per cent), Oil&Gas (1.06 per cent), Banking (0.72 per cent) and Auto (0.62 per cent) among others.

In line with bullish sentiment, both mid- and small-cap indices ended 0.52 per cent higher.