Sensex, Nifty scale new lifetime highs on gains in banking, IT shares

Mumbai: Benchmark Sensex and Nifty rebounded from early lows and settled at fresh record high levels in a volatile trade on Wednesday following buying in private bank and select IT shares.

The 30-share BSE Sensex jumped 408.86 points or 0.55 per cent to settle at a new record high of 74,085.99. During the day, it went up by 474.14 points or 0.64 per cent to hit an all-time high of 74,151.27. The index had opened lower and later fell to a day’s low of 73,321.48 in the first half.

The broader Nifty climbed 117.75 points or 0.53 per cent to settle at a lifetime high of 22,474.05. During the day, it jumped 140.9 points or 0.63 per cent to reach its record high of 22,497.20.

The benchmark indices traded lower in the first half of the session but gains in private banks and pharma shares and firm European markets helped erase losses, analysts said.

Among Sensex firms, Kotak Mahindra Bank rose the most by 2.47 per cent. Axis Bank, Bharti Airtel, Sun Pharma, HCL Technologies, Mahindra & Mahindra, Titan and Tata Consultancy Services were among the major gainers.

UltraTech Cement, NTPC, Maruti, JSW Steel, Power Grid and Tata Motors were among the laggards.

“Global markets witnessed mixed signals ahead of the US FED chair’s testimony to Congress. The domestic market exhibited a smart recovery in the second half, reversing initial losses as buying picked up in large-cap stocks,” said Vinod Nair, Head of Research at Geojit Financial Services.

The tone was negative in the first half, tracking weak global cues, however, resilience in banking combined with sharp recovery in the IT and FMCG majors completely changed the mood as the day progressed, Ajit Mishra, SVP – Technical Research at Religare Broking Ltd, said.

In the broader market, the BSE smallcap gauge declined 1.91 per cent and midcap index fell by 0.65 per cent.

Among the indices, bankex climbed 0.99 per cent, teck jumped 0.87 per cent, IT (0.66 per cent), consumer durables were among the gainers.

Services declined 2.03 per cent, realty dipped 1.40 per cent, power (1.07 per cent), oil & gas (0.85 per cent) and commodities (0.76 per cent).

Shares of JM Financial closed nearly 11 per cent lower after the Reserve Bank imposed restrictions on group firm JM Financial Products Ltd.

IIFL Finance Ltd tanked 20 per cent to hit the lower circuit at Rs 382.80 on BSE, extending losses for the second day after RBI action against the company.

Indian-Canadian billionaire Prem Watsa-backed Fairfax India announced its commitment to provide up to USD 200 million (about Rs 1,650 crore) liquidity support to IIFL Finance after the Reserve Bank of India barred the non-bank lender from disbursing gold loans.

Sun Pharma, on the other hand, hit a 52-week high before closing at Rs 1603.90, up by 1.89 per cent, after reports said that the USFDA has classified its Ankleshwar unit as No Action Indicated.

In Asian markets, Seoul, Tokyo and Shanghai settled lower while Hong Kong ended with gains. European equity markets were trading in the green. The US markets ended lower on Tuesday.

Global oil benchmark Brent crude climbed 0.80 per cent to USD 82.59 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 574.28 crore on Tuesday, according to exchange data.

Taking a breather after a record-breaking rally, the BSE benchmark declined 195.16 points or 0.26 per cent to settle at 73,677.13 on Tuesday. The Nifty dipped 49.30 points or 0.22 per cent to 22,356.30.