Indices at new peak; all eyes on RBI
Setting new records for the second day, the benchmark Sensex on Tuesday closed at 32,575 and the Nifty at 10,115 as investors wait for the outcome of the RBI policy meet on Wednesday amid corporate earnings momentum.
Improving monthly sales numbers from automakers and a firming trend in global markets fuelled the rally.
The Sensex settled at yet another new high of 32,575.17 by surging 60.23 points, or 0.19 per cent. It surpassed its previous record of 32,514.94 reached on Monday.
The gauge had risen 205.06 points in the previous session.
The NSE Nifty closed at 10,114.65 – a new peak -- up 37.55 points, or 0.37 per cent. It broke previous record closing of 10,077.10 hit on Monday.
What kept the gains in check was findings of a private survey which showed that manufacturing sector contracted in July following the GST launch as new orders and output dropped for the first time since the downturn in December last year post demonetisation.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) stood at 47.9 in July, down from 50.9 in June, its lowest mark since February 2009.
"Market started range-bound due to weak manufacturing data and caution ahead of the RBI monetary policy on Wednesday.