Nifty hits closing record above 10k; Sensex at fresh peak too
Making record a habit of sorts, the Nifty on Wednesday closed above 10,000 in a first and the Sensex set a fresh life high, powered by unabated capital inflows amid quarterly earnings optimism.
Speculators covered their short positions ahead of the July derivatives expiry on Thursday, building up the momentum.
FII inflows ensured there is enough liquidity to support the stocks despite lingering concerns over stretched valuations.
"Better first quarter results and short covering ahead of F&O expiry took the market to new heights... On the global front, rising consensus expectations for status quo on US key interest rate is providing support to the market," said Vinod Nair, Head of Research, Geojit Financial Services.
After hitting a fresh intra-day life high of 10,025.95, the 50-share NSE index ended at a new peak of 10,020.65, up 56.10 points, or 0.56 per cent, surpassing its last closing record of 9,966.40 hit on July 24.
Metal stocks contributed big, tracking a rally in global commodity prices -- particularly base metals on expectations of rising demand from China and a weak dollar.
Vedanta rallied 2.33 per cent at a three year high after the company's consolidated profit after tax doubled for the June quarter. Tata Steel, Jindal Steel and Power and Hindustan Zinc went higher by up to 8.37 per cent. The 30-share Sensex rallied to an all-time high of 32,413.63 too, before ending up 154.19 points, or 0.48 per cent, at a new record 32,382.46. It broke previous closing high of 32,245.87 reached on July 24.
The gauge has lost 17.60 points on Tuesday.
A firming trend in Asia and a better opening in Europe kept the pitch conducive to more gains, with all eyes on the US Federal Reserve's interest rate move.
Renewed hopes of a rate cut by the Reserve Bank at its policy meet early next month as the inflation dipped to record low accelerated the buying pace, traders said.