Millennium Post

Growth data lift Sensex 229 pts to record 26,868 close

Spurred by robust economic growth, the BSE Sensex on Monday surged to historic peak of 26,900.30 points and Nifty crossed 8,000 level for the first time on aggressive buying particularly in auto, metal and banking counters. The 30-share Sensex, however, settled at 26,867.55 — a new closing high — with gains of 229.44 points or 0.86 per cent over the previous close. In the last five trading sessions, the Sensex has been scaling new closing peaks.

The 50-share Nifty crossed the 8,000 level for the first time and closed at 8,027.70, a net gain of 73.35 points or 0.92 per cent. The Nifty touched all time high of 8,035.00 in intra-day trade. It took 78 trading sessions from May 12 to reach the 8,000-mark from 7,000 points.

Sentiments turned bullish as foreign capital inflows picked up after economic growth improved to two-and-a-half year high of 5.7 per cent in the April-June quarter, brokers said. Growth numbers were released on last Friday. The market also got a boost after Prime Minister Narendra Modi today promised to remove roadblocks to foreign investment and said that economy was out of difficult situation and more reforms were in the offing.

‘Positive economic data and continued optimism in the equity segment gave renewed boost to the current rally. Nifty today saw a breakout above 7970 level and also closed above 8000 level, which holds psychological importance,’ Bonanza Portfolio Senior Research Analyst Nidhi Saraswat said.

‘The stellar run for Indian equity markets continued on the back of better than expected GDP data and an increased conviction amongst the investing community on equities as an asset class for the next three to five years,’ Devang Mehta, SVP & Head Equity Advisory & Retail Sales, Anand Rathi Financial Services Ltd, said.

Strong sales number in August posted by some auto makers, including Maruti Suzuki, was another positive factor for the markets, brokers said, adding that operators preferred to go long on the first day of September series. Among sectoral indices, BSE Metal sector index rose (2.79 per cent), followed by Capital Goods (2.75 per cent), Realty (2.72 per cent) and Power (2.60 per cent).
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