The Sensex and the Nifty rose nearly one per cent at the closing session on Monday on the back of Modi-inspired rally and strong economic growth data for April-June quarter.
The 30-share BSE index Sensex surged 229.44 points to end at 26,867.55 and the 50-share NSE index Nifty gained 73.35 points to close at 8,027.70.
Barring FMCG, all other BSE sectoral indices ended significantly in the green. Among them, metal index gained the most by 2.79 per cent, followed by capital goods index 2.75 per cent, realty 2.72 per cent and power 2.6 per cent. Only FMCG index was down 0.67 per cent.
Top five Sensex gainers were Hero MotoCorp, Maruti, Tata Power, Hindalco and GAIL, while the top five losers were Sun Pharma, ITC, HDFC, BHEL and Tata Motors.
The Narendra Modi-inspired rally has lifted the 50-share NSE Nifty beyond 8,000-mark for the first-time ever in early trade.
The BSE Sensex too registered its new peak of 26,854.08 after the Government had last week announced a strong economic growth data for the April-June quarter.
The country's economy expanded at its fastest pace in more than two years in the April-June quarter at at 5.7 per cent in the first quarter of 2014-15.
Life-time peaks
Seventy stocks, including 8K Miles, Adi Finechem, Arvind, Blue Dart, ICICI Bank, IndusInd Bank, Kajaria Ceramics and Tech Mahindra, have registered their life-time peaks and 135 stocks have touched their new 52-week highs on the Bombay Stock Exchange.
Gains in NTPC, Coal India, Hindalco, L&T, ICICI Bank and SBI helped Nifty to scale a record high of 8,022.7.As much as 65 stocks rose to their fresh 52-week high on the National Stock Exchange.
According to Nomua , green shoots are currently evident in the consumer discretionary, manufacturing and upstream infrastructure sectors. "As the industrial recovery broadens out, we expect the services sector to benefit. In our view, India is at the cusp of a multi-year growth recovery," it added.
Vivek Gupta, Director-Research, CapitalVia Global Research Ltd , said: “If everyone thought that the market just had an election rally and it would not sustain and those who are still sceptical on the current rise of the markets may have to change their way of thinking before it’s too late. During a bull market, even any big bad news doesn’t have any major impact on the markets.Investors those holding positions in market should hold their positions."
Investors should keep investing and better be stock-specific in their selections and focus on stocks and sectors which have not caught up to the rally till now. Any correction right now should not be anticipated as end of the market rally, rather it should be anticipated as an opportunity to invest, he added.
A report by Equentis Capital said: "Volatility likely to increase during the week as market will react on Q1 GDP data. Government released Q1 June GDP data on August 29, 2014 after market hours. Automobile companies start unveiling sales volume data for August 2014, PSU OMCs will be in focus as a monthly revision in diesel prices is due at the end of the month. PSU OMCs have been raising diesel prices by 50 paise per litre every month after the previous government in January 2013 allowed PSU OMCs to increase the retail selling price within a small range every month. HSBC Manufacturing PMI for August 2014 is due on September 1, 2014 and HSBC Services PMI for August 2014 is due on September 3, 2014."
European shares kicked off September on a flat note as investors weighed mergers and acquisitions speculation and expectations of new monetary largesse in Europe against tensions in Ukraine and weak economic data out of China.
European indices, FTSE-100 and CAC-40 were in the red, while DAX was in the green.