Market update: Sensex, Nifty end at new peak, up 1 per cent each

After two-day of small correction, both the roaring key indices, Sensex and Nifty, went berserk, scaling their fresh historic peaks and rocketed by over one per cent each to register their new highs of 27,319.85 and 8,173.90 respectively on enhancing confidence among investors on sustained buying by foreign funds and fall in crude prices.

The benchmark S&P Bombay Stock Exchange (BSE) Sensex on Monday resumed strong on the back of rally on Wall Street last Friday to log a life-time closing high of 27,319.85.

The 30-share barometer gradually moved up further to an intra-trade peak of 27,354.99 before spurting by 293.15 points, or 1.08 per cent, to end at a new high. In the last two trading sessions, it had risen by 113.33 points or 0.42 per cent.

Tracking the same trend, the broad-based 50-share Nifty of the National Stock Exchange (NSE) also commenced higher and rallied further to hit a new intra-day peak of 8,180.20 before recording new closing high of 8,173.90, up by 87.05 points (or 1.08 per cent).

Oil & Gas shares were at the forefront after fall in global crude oil prices after subdued US jobs data fuelled demand concerns and a cease-fire between Russia and Ukraine.

Brent crude oil for October settlement was trading above US $100 a barrel.

It will help the country to contain current account deficit and fiscal deficit. The country imports nearly 80 per cent of its crude oil requirements.

Persistant buying by foreign funds was the major force behind the current rally. The data showed that FPIs/FIIs bought shares worth Rs 4,813.38 crore last week, including provisional data of September 5.

Buying was seen in most of the sectors, as 11 out of 12 sectoral indices gained between 0.26 per cent and 1.79 per cent with Oil&Gas, FMCG, Bankex, Metal and IT shares taking the lead.

Tyre shares were in the limelight on hopes that recent sharp fall in rubber prices could boost the profitability of these companies. Apollo Tyres, Ceat Tyres, Dunlop India, Falcon Tyre, Goodyear India, JK Tyres, MRF and TVS Shrichakra closed strong between 4.92 per cent and 20.00 per cent.

Refinery shares were also attracted good buying support on fall in crude prices amid hopes of further reforms. HPCL, BPCL, Castrol, IOC, ONGC, Oil India, Cairn and RIL rose between 1.65 per cent and 4.32 per cent.

Meanwhile, investors got rich by almost Rs 1.25 lakh crore on Monday.

Mr Jignesh Chaudhary, Head of Research, Veracity Broking Services said, "Today Indian equity opened positively followed by the Rupee appreciation, positive sentiments in the global equities. Today indices posted new all time high with the help of blue chip companies which closed positively."

There was no major trigger from Asian markets, as China, South Korea and Taiwan were closed today for holiday while indices from Hong Kong eased by 0.20 per cent and Taiwan rose by 0.23 per cent. European stocks too were trading lower in their late morning deals. The CAC was down by 0.25 per cent, the DAX by 0.06 per cent and the FTSE by 0.69 per cent.

Overall, 26 of the 30-share sensex-based counters closed with gains while M&M, NTPC, Tata Power and HDFC finished with losses.

Major gainers were Hindalco (3.49 per cent), ONGC (2.78 per cent), SBI (1.94 per cent), HDFC Bank (1.80 per cent), Wipro (1.66 per cent), HUL (1.65 per cent), TCS (1.50 per cent), Infosys (1.29 per cent), RIL (1.19 per cent), Axis Bank (1.18 per cent), Maruti (1.12 per cent), Cipla, (1.09 per cent), L&T (1.02 per cent), SSLT (0.98 per cent), Sun Pharma (0.96 per cent) and ITC (0.96 per cent).

Among the S&P BSE Sectoral indices, Oil&Gas firmed up by 1.79 per cent, FMCG by 1.40 per cent, followed by Bankex (1.38 per cent), CG (1.29 per cent), Metal (1.25 per cent), IT (1.22 per cent) and Teck (1.20 per cent).

Reflecting the rally in second-line stocks with their indices BSE-Smallcap and BSE-Midcap outperforming the sensex and closed strong by 2.11 per cent and 1.29 per cent, resulting the total market to remain strong as 2,081 stocks closed in the green while 947 settled in the red.