Stock markets today surged to new highs with benchmark Sensex rising over 106 points to close at 28,046.66 after WPI inflation cooling to a 5-year low in October strengthened hopes of a rate cut while good earnings from bluechips like SBI boosted the sentiment.
Besides, robust buying by overseas investors and tumbling crude oil prices supported the strong momentum in stocks.
The 50-scrip NSE Nifty index spurted by 32.05 points, or 0.38 per cent, to close at new high of 8,389.90, surpassing previous record closing of 8,383.30 hit on November 12.
The 30-share BSE Sensex opened on a strong footing and continued its upward march to reclaim the key 28,000 mark to hit the day’s high of 28,093.23 as buying picked up.
After some profit-booking at record levels, the barometer settled at 28,046.66 at a fresh record closing level, clocking net gain of 106.02 points or 0.38 per cent over last close.
Thus, the Sensex bettered its previous closing peak of 28,008.90 reached on November 12. Indices have been hitting new highs after the government announced a slew of reform measures to boost economy amid positive economic data.
Driven by softening prices of fuel and food items, the WPI inflation cooled to a five year low of 1.77 per cent in October raising hopes of rate cut by the Reserve Bank next month to boost economic growth.
State-run State Bank of India posted 30.5 per cent growth in net profit at Rs 3,100.41 crore for the quarter ended September 30, pushing its shares up by 2.55 per cent.
In metal pack, Hindalco surged 3.59 per cent.
“WPI for October is one of the lowest in recent years… focus would again shift to global markets, progress on reforms and RBI monetary policy,” said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities.
Other gainers that lifted indices to new highs included CIL, GAIL, Bajaj Auto, HDFC Bank, Hero MotoCorp, Infosys, TCS, ICICI Bank and RIL. Overall, 21 of 30 Sensex stocks closed up.
A firming trend at the other Asian markets and a mixed opening in Europe too influenced sentiments, brokers said.
Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 690.61 crore yesterday.
Sectorwise, BSE Metal index rose the most by 2.53 per cent, followed by Realty 2.35 per cent, Oil&Gas 1.06 per cent, Banking 0.72 per cent and Auto 0.62 per cent among others. In line with bullish sentiment, midcap index and smallcap, both indices ended 0.52 per cent higher.