Sensex & Nifty bounce back to continue record smashing spree
Mumbai: Market benchmark BSE Sensex sprang back from early losses to close at a new lifetime high of 37,606.58 on Tuesday on late buying in RIL, HUL, Infosys and Hero MotoCorp, continuing its record run for the seventh straight day. The broad-based NSE Nifty also continued its record-smashing streak for the fourth day by gaining 36.95 points or 0.33 per cent to settle at a fresh all-time high of 11,356.50.
The 30-share Sensex closed at 37,606.58 points, up by 112.18 points, or 0.30 per cent, breaking its previous closing record of 37,494.40 hit on Monday. Stock markets traded in the negative for most part of the session due to profit booking amid mixed trends in Asian markets after overnight losses on Wall Street.
Investors were cautious ahead of the RBI policy outcome, scheduled tomorrow, and preferred to book profits at record levels, brokers said. Banking stocks bore the brunt as SBI, ICICI Bank and Axis Bank dropped up to 3.23 per cent.
However, a recovery in rupee, buying by domestic institutional investors, encouraging earnings by select blue-chips and stock specific buying helped the market get back on its feet, brokers said. Vinod Nair, Head of Research, Geojit Financial Services Ltd said, "Caution ahead of tomorrow's RBI & US FED policy led the indices to start on a weak note. However, strength in earnings supported the market to reverse from day's low and ended up with a gain."
Reliance Industries was the top gainer by climbing 3.14 per cent to close at record Rs 1,185.85 on BSE. RIL also regained its status as the country's most valued firm by market capitalisation, replacing Tata Group's TCS from the top slot. Heromotocorp rose by 2.77 per cent followed by HUL that rose 2.52 per cent.
Shares of IT services firm Tech Mahindra ended higher 3.93 per cent to emerge as top gainer among Nifty stocks after the company today reported 12.4 per cent rise in consolidated net profit for the first quarter ended June 2018. In contrast, Axis Bank fall the most 3,23 per cent after after a 46 per cent drop in net profit.