Home Business For the first time Sensex crosses 35K mark after Govt’s debt masterstroke

For the first time Sensex crosses 35K mark after Govt’s debt masterstroke

429
0
SHARE

(G.N.S) Dt. 17

New Delhi

Benchmark Sensex plowed past the 35,000 mark for the first time on Wednesday as the government’s announcement of a reduction in additional borrowing turbo-charged the domestic stock market.

As fiscal deficit worries eased, what pepped up mood was expectations of big changes in the Goods and Services Tax at the GST council’s next meet on Thursday.

Comfortable liquidity, along with better-than-expected quarterly numbers by select companies, topped up optimism.

The overall result was there for all to see. The benchmark index BSE Sensex broke free and crossed the magical figure of 35,000 for the first time ever. The 50-share NSE Nifty index finished short of 10,800.

The BSE Sensex closed higher by a sharp 311 points at 35,082 while the NSE Nifty index settled up 88 points at 10,788.

The government lowered the additional borrowing requirement for the current fiscal to Rs 20,000 crore, from Rs 50,000 crore announced earlier.

Banking counters had a field day, followed by capital goods and FMCG. Axis Bank, State Bank of India, ICICI BankBSE 2.68 %, Infosys, YES BankBSE 2.58 % and Larsen & Toubro gained big in the 30-share Sensex.

“IT and Banks outperformed in trade today leading the Sensex above the 35k levels to their highest point ever. ICICI, Axis, and SBI were the top performers of the session. Optimism is omnipresent in the markets right now, with everyone calling on higher levels shortly, DII funds continue to pour in. We continue to remain cautious overall and would not advocate entering fresh positions at this juncture,” said Nikhil Kamath, Co-Founder and Head of Trading, Zerodha.

Sustained buying in IT, bank, capital goods and pharma stocks amid optimism around better quarterly earnings helped.

Foreign portfolio investors (FPIs) purchased shares worth a net Rs 693.17 crore on January 16.

In the end, domestic stocks bucked the weak global trend overseas. US stocks scaled a new high on Tuesday, but wiped off their day’s gains as the benchmark Dow Jones closed in the red. The index settled 0.04 per cent down at 25,792 on January 16. Asian peers Hang Seng, Shanghai and Nikkei were trading mixed.

Among the 50 stocks in the Nifty 50, 38 closed the day in the green while 12 in the red.

Buying was across the board on bourses, with Nifty Bank index hitting a fresh all-time high of 26,324, fuelled by robust gains in public lenders such as Syndicate Bank and Punjab National Bank, both surging over 6 per cent.

Barring Nifty Media, all sectoral indices closed in the green on NSE, with Nifty PSU Bank index gaining over 4 per cent. Nifty Bank, Private Bank, pharma and metal indices advanced over 1 per cent. On the other hand, BSE saw all indices settling in the green.

IT stocks extended the gains, riding on weak rupee along with Morgan Stanley’s revised outlook on Indian IT, which said on Tuesday that the stocks of the sector could be set for a turnaround in 2018.

However, Wipro and Tech Mahindra remained immune to these developments and closed 1.81 per cent and 0.65 per cent down, respectively, on NSE on Wednesday.

The top loser of the day Zee Entertainment cracked over 3 per cent even as the company today reported a 28.27 per cent increase in consolidated net profit at Rs 321.72 crore for the December quarter.

Wipro, Oil & Natural Gas Corporation, Mahindra and Mahindra and HDFC Bank also settled among the losers.

As many as 77 stocks hit fresh 52-week highs on NSE, compared with 7 stocks that hit fresh 52-week lows on Wednesday.

Globally, stocks retreated from record highs on Wednesday on lower commodity prices and downbeat earning updates from companies. Asian stocks too slipped from a record high being dragged by falling oil and commodity prices.

Print Friendly, PDF & Email

LEAVE A REPLY

Please enter your comment!
Please enter your name here