Sensex soars 522 points to scale new closing high; Nifty hits 8700-mark

The 50-share NSE Nifty also rose by 144.90 points or 1.69 percent to 8,695.60, its record closing high, after crossing 8,700-level for the first time in its history.

Mumbai: Extending its winning streak for the fourth day, benchmark index BSE Sensex on Tuesday surged by over 522 points to record a new closing high of 28,784.67, and NSE Nifty breached the 8,700-mark for the first time in its history.

The market rally was driven by strong buying in the banking space and recovery in metals and oil & gas counters. Traders said sustained foreign capital inflows also boosted investor sentiment.

Earning season guidance and expectations from upcoming budget also aided the rally, brokers said.

HDFC at 5.84 percent was the biggest Sensex gainer, followed by SSLT at 5.36 per cent, Tata Steel 4.50 percent, Axis Bank 4.33 percent and Tata Motors 3.78 percent.

The 30-share BSE index resumed higher remained in the positive terrain throughout the day before ending at at all-time closing high of 28,784.67, a steep jump of 522.66 points of 1.85 percent from its previous close.

The 50-share NSE Nifty also rose by 144.90 points or 1.69 percent to 8,695.60, its record closing high, after crossing 8,700-level for the first time in its history.

"Markets continued the good run and closed at a fresh high on the back of positive sentiments emanating from the RBI rate cut, expectations of further reforms from the Government, expectations of ECB stimulus and a slightly netter-than- expected GDP number from China," said Dipen Shah, Head, Private Client Group Research, Kotak Securities.

Asian markets ended higher after China reported its economy had not slowed as far as many had feared. Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan finished higher by 0.80-2.07 percent.

"Equity markets (in India) scaled a new high today. There is no one reason for this, the market is in a bull grip. The IMF's optimistic forecast on India's expected growth rate till 2016 was another shot in the arm, as was the prediction that India's growth rate may exceed China's after a long time," said Jayant Manglik, President, Retail Distribution, Religare Securities.

Foreign portfolio investors bought shares worth a net Rs 433.72 crore yesterday, as per provisional data from stock exchanges.

"Markets touched all time high on both global as well as local investors huge buying. There is a left out feeling amongst domestic investors who are hugely underweight on equity as an asset class.

"There is optimism also due to Obama's visit during coming week," said Motilal Oswal, CMD, Motilal Oswal Financial Services.

Metal and mining shares rose after the latest data showed China's GDP grew 7.4 percent in December quarter, its lowest in 24 years but a tad higher than market expectations.

"Fall in the GDP growth of the world's largest manufacturing hub has spooked the prospects of recovery in oil prices ever more and the brent oil prices corrected by almost 40 cents and was trading around USD 48.46," said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.

Of 30 Sensex scrips, 22 ended higher and the rest lower.

ITC (3.57 percent), Hindalco (3.00 percent), Relinace Ind (2.42 percent), HDFC bank (1.76 percent), ICICI Bank (1.70 percent), SBI (1.58 percent), Bharti Airtel (1.36 percent) and Wipro (1.03 percent) were the other big gainers.

Gail India lost by 1.90 percent.

Among BSE sectoral indices, ,etal rose by 3.03 percent followed by Bankex 1.84 percent, FMCG 1.69 percent, Oil&gas 1.33 percent and Realty 1.20 percent.

Total market breadth remained positive as 1,560 stocks ended in the green, 1,412 finished in the red and 117 ruled steady. Total turnover fell to Rs 3,291.87 crs from Rs 3,487.72 crs yesterday.

European markets were also trading higher on speculation the European Central Bank will announce quantitative easing this week. Key benchmark indices in France, Germany and UK firmed up by 0.15-0.34 percent.

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