The NSE index Nifty today closed at a record high of 10,153.10 and the Sensex surged by 151 points to end at a six-week high led by banking, capital goods and auto stocks due to unabated buying by domestic institutional investors and positive global cues.

According to traders, domestic sentiment was buoyed as world stocks hit a record high and the dollar reached an eight-week peak against the yen on expectations that the US Federal Reserve will this week announce trimming of its balance sheet, part of a reversal of cheap money worldwide.

Revival of buying by FPIs, who had been major sellers for a long spell on the Indian bourses, too accelerated the buying pace to some extent, helping the benchmark Nifty to scale new highs, brokers said.

The 50-share NSE index Nifty closed at all-time high of 10,153.10, up 67.70 points, or 0.67 per cent after shuttling between 10,171.70 and 10,131.30. It broke the previous record closing of 10,114.65 hit on August 1. It also breached intra-day record of 10,137.85 reached on August 2.

Reflecting the bullish mood, the NSE Bank Nifty breached the 25,000 mark to hit all-time high of 25,105.35.

The 30-share BSE index Sensex also rose 151.15 points, or 0.47 per cent to end at 32,423.76, its highest closing since August 2 when it had settled at 32,476.74. During the day, it touched a high of 32,508.06. The gauge had gained 610.64 points in the previous seven straight sessions.

Barring oil & gas, all other BSE sectoral indices ended in the positive zone. Among them, capital goods index was the star-performer and was up 1.47 per cent, followed by consumer durables 1.43 per cent, auto 1.24 per cent and banking 0.71 cent, while only oil & gas index was down 0.07 per cent.

Top five Sensex gainers were Bajaj Auto (+3.57%), HUL (+2.77%), L&T (+2.09%), Coal India (+1.89%) and Cipla (+1.7%), while the major losers were ITC (-0.95%), Tata Steel (-0.92%), ONGC (-0.9%), State Bank of India (-0.7%) and Sun Pharma (-0.53%).

Asian shares hit decade highs as investors regained confidence after the weekend passed with no new provocation by North Korea.

“There seems to be a global rally where liquidity is driving all markets. Markets have become very overbought,” said Sanjiv Bhasin, executive vice president of markets and corporate affairs at IIFL.

Trade deficit touched 2.4 per cent of gross domestic product and inflation is rising, which means the Reserve Bank of India may not cut rates at its next meeting, he added.

“There is a feel-good factor as there could be more spending because of the ongoing festival season,” Bhasin said.

Data released late on Friday showed India's trade deficit widened to $11.64 billion in August from a month ago.

Asian shares hit decade highs on Monday and the dollar held firm early in a week in which the US Federal Reserve is likely to wrestle with its bloated balance sheet as part of a long reversal of super-cheap money worldwide.

MSCI’s broadest index of Asia–Pacific shares outside Japan rose 0.9 per cent to reach heights not visited since late 2007. Samsung Electronics led the gains, along with healthcare and financial stocks.

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