Sensex crosses 32,000, Nifty at new high on rate cut chances
BSE index took 33 sessions to rise 1,000 points before it finally went beyond the psychologically significant 32,000.
Mumbai: The Sensex today went past the 32,000-mark for the first time ever soaring over 232 points and the Nifty closed at a new peak 9,892 as inflation hit a record low, offering the RBI leeway for a lower policy rate.
The 30-share BSE index took 33 sessions to rise 1,000 points before it finally went beyond the psychologically significant 32,000.
Higher Asian and European stocks provided fodder after the US Fed chief, in a House testimony, signalled that the approach to higher rates will be steady, prompting investors here to buy more.
Retail inflation for June hit a historically low 1.54 per cent and industrial output growth for May slumped to 1.7 per cent, boosting chances of a rate reduction by the Reserve Bank at its upcoming August policy meet. The macro numbers were released after market hours yesterday.
The BSE Sensex settled at a new peak of 32,037.38, up 232.56 points, or 0.73 per cent. It surpassed its previous record of 31,804.82 touched yesterday.
In past four days, the index had gained 676.75 points.
The broader 50-issue NSE Nifty spurted 75.60 points, or 0.77 per cent, to close at fresh lifetime high of 9,891.70, bettering its earlier record 9,816.10 hit yesterday.
Both indices rose for the fourth consecutive session.
ITC emerged as the top gainer by rising 3.03 per cent.
Bharti Airtel, ICICI Bank and Sun Pharma rose up to 1.84 per cent.
The largest IT exporter, TCS, firmed up 0.20 per cent ahead of its June quarterly earnings today.
Traders said ample liquidity in the market is driving the current phase of the rally amid optimism over earnings from blue-chip companies.
Consumer goods and banking stocks had a good day. The FMCG index rose the most by surging 1.58 per cent, followed by capital goods and banking.
Foreign investors have been supporting the ongoing rally by pumping in sizeable money into domestic markets. Foreign portfolio investors (FPIs) bought shares worth a net Rs 361.25 crore yesterday while domestic institutional investors (DIIs) sold shares worth a net Rs 330.58 crore, showed provisional data.
Buying activity also rubbed off on broader markets, with mid-cap and small-cap indices ruling up.