Indian stock markets extended their record-breaking spree with the Sensex Monday hitting a new peak and closing above 22,000 mark for the first time, while the rupee surged to its strongest level against dollar in over six months, buoyed by robust capital inflows.
Mumbai: Indian stock markets extended their record-breaking spree with the Sensex Monday hitting a new peak and closing above 22,000 mark for the first time, while the rupee surged to its strongest level against dollar in over six months, buoyed by robust capital inflows.
Both equity benchmark indices made a stellar start to the week, with the Sensex and Nifty logging new lifetime highs. Interest-rate sensitive shares witnessed good buying on hopes the RBI will hold rates in the upcoming policy review.
The BSE Sensex resumed strong and gradually moved up to a histroic intra-day high of 22,074.34, before closing at 22,055.48 -- a gain of 300.16 points, or 1.38 percent, its biggest daily rise in two weeks.
The previous closing high of 21,934.83 was recorded on March 10 while the lifetime peak of 22,040.72 was on March 18.
The broader 50-issue CNX Nifty of the NSE flared up by 88.60 points, or 1.36 percent, to end at new record closing of 6,583.50. It registered a lifetime peak of 6,591.50 on an intra-day basis as well.
In the currency market, the rupee appreciated 12 paise against the US dollar to end at an over six-and-a-half month closing peak of 60.77, buoyed by sustained FII inflows.
Continued dollar selling by exporters also aided the rupee's upward journey for the second session in a row.
"I certainly believe...The economy has stabilised and that is reflected in rupee and stock markets. And going forward, I think, we will see growth numbers also improving," Economic Affairs Secretary Arvind Mayaram said in Delhi.
Overseas funds pumped in over Rs 1,465 crore in Indian equities today.
The Indian market has been strong in the current year, aided by robust FII flows and optimism related to general elections," said Sanjeev Zarbade, Vice President - Private Client Group Research, Kotak Securities.
Foreign institutional investors have pumped funds worth over Rs 22,000 crore (USD 3.6 billion) in March so far. These investments helped the Sensex jump over 4 percent and the rupee about 2 percent in the month.