Riding on market expectations of a series of reforms, benchmark indices Sensex and Nifty climbed to their all-time highs for the second day in a row on Friday with energy shares leaping on optimism that the Modi government will agree to raise natural gas prices by the end of this month.
With foreign investors leading the rally, the Sensex posted a new all-time intra-day high of 25,419.14 and settled for the day at a new closing high of 25,396.46, up 376.95 points or 1.51 per cent. On a weekly basis, it has rallied by a whopping 1,179.12 points or 4.89 per cent.
According to analysts, the European Central Bank’s decision to cut its benchmark interest rates to unprecedented lows to pump money into the sluggish euro zone economy and the onset of the southwest monsoon boosted the sentiment. “The ECB decision may accelerate capital flows to emerging markets. India could attract a major chunk of this as the country is the best performer among emerging markets,” said an investment banking official.
Similarly, the wide-based 50-issue CNX Nifty of the NSE also jumped 109.30 points, or 1.46 per cent, to end above 7,500-mark for the first time at 7,583.40.
ONGC soared to a record high and closed 10.57 per cent higher at Rs 464. Reliance Industries jumped the most in two weeks and closed 2.97 per cent higher. GAIL India rallied the most since May 2009 and closed 7.52 per cent higher at Rs 420.35.