Stocks spurt on eco optimism; Sensex scales 38,000 mark

Mumbai: Benchmark Sensex broke past the 38,000-barrier for the first time, while the NSE Nifty extended its record run for the fifth day on Thursdayas optimism surrounding the India growth story continued to override global trade concerns.

Banking stocks sparkled for yet another session, with ICICI Bank topping the Sensex gainers list.

Uninterrupted foreign and domestic fund inflows amid robust corporate earnings shows that investor sentiment remains skewed towards equities, brokers said. Foreign markets were mixed after China announced retaliatory tariffs on US imports.

However, Dalal Street shrugged off the latest escalation in the trade showdown between Washington and Beijing, and continued its march upwards. The 30-share Sensex breached the historic 38,000-mark in opening trade and remained in the green throughout the session.

It finally finished 136.81 points, or 0.36 per cent, higher at 38,024.37, breaking its previous record close of 37,887.56 reached on Wednesday. The index has taken 11 sessions to scale the 38,000 mark from 37,000 level reached on July 26.

The broader Nifty rose 20.70 points, or 0.18 per cent, to close at 11,470.70 -- surpassing its previous high of 11,450 reached yesterday.

On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 568.63 crore, while domestic institutional investors (DIIs) bought equities to the tune of Rs 30.25 crore yesterday, provisional data showed. "Green shoots in earnings and growth prospects of domestic economy overrode global headwinds caused by trade tensions.

"On the other hand, oil price hovering near the recent low and increasing exposure of FIIs to domestic equity bodes well for the market direction. Investors are also focused on tomorrow's IIP data with a positive consensus of 5.6 per cent growth," said Vinod Nair, Head of Research, Geojit Financial Services. ICICI Bank surged 4.64 per cent after the company denied media reports alleging covering up of bad loans.

Other winners were Axis Bank 3.86 per cent, Vedanta 2.56 per cent, SBI 2.53 per cent, NTPC 1.93 per cent, Power Grid 1.69 per cent, Coal India 1.41 per cent, Tata Steel 1.29 per cent and Infosys 1.28 per cent, among others.

However, Bharti Airtel tumbled 4.64 per cent, followed by ONGC, Kotak Bank, IndusInd Bank, L&T, HDFC Bank, Hero Motocorp, Asian Paints, Maruti Suzuki, Yes Bank, Sun Pharma, HDFC and HUL.

Among sectoral indices, BSE realty rose 2.39 per cent, metal 1.37 per cent, bankex 1.32 per cent, PSU 1.08 per cent, power 1.02 per cent, infrastructure 0.82 per cent, finance 0.67 per cent, FMCG 0.36 per cent, IT 0.30 per cent and teck 0.14 per cent.

Telecom, consumer durables, healthcare, capital goods, oil and gas and auto succumbed to late selling and shed up to 1.31 per cent.