Stock market continued its record-breaking spree on Monday with the BSE Sensex spurting 233 points to end at a fresh lifetime high of 36,283.25 and the broader Nifty at record 11,130.40 after an upbeat growth forecast by the Economic Survey boosted the investor sentiment.
Adding to the bullish fervour, the Economic Survey for 2017-18 said the GDP will grow on the back of major reforms which would be strengthened further in the next financial year. It said India will re-establish itself as the world’s fastest growing major economy with GDP expanding by 7-7.5 per cent in 2018-19, up from 6.75 per cent in the current fiscal. The beginning of February derivatives contracts and unabated foreign fund inflows amid encouraging corporate earnings added to the optimism, brokers said.
After opening on a strong footing on optimistic buying by participants, the Sensex gathered momentum to touch an all-time high of 36,443.98. However, it shed some ground on profit-booking, before finally finishing at 36,283.25, up by 232.81 points, or 0.65 per cent — surpassing its previous record closing of 36,161.64 hit on January 24. The 50-share NSE Nifty too closed at a fresh life high of 11,130.40 points, up 60.75 points, or 0.55 per cent. It broke its previous closing record of 11,086 reached on January 24.
“Benchmark indices continued their up-move supported positive global cues and strong liquidity. Market cheered the GDP growth estimates of 7-7.5 per cent for 2018-19 released by the Economic Survey. Currently market is expecting a good Budget with focus on fiscal prudence and reducing rural distress. Additionally, good Q3 results from index heavyweights have taken markets to new high. But due to premium valuation, investors were cautious on the mid and small cap stocks,” said Vinod Nair, Head of Research, Geojit Financial Services.
Jayant Manglik, President, Religare Broking, said, “Nifty opened firm and ended with decent gains, thanks to continuous rise in select index majors and supportive global cues. The Government’s disinvestment plan for next fiscal and surge in revenue collection figure under GST triggered the upbeat start. Also, participants took note of Economy Survey wherein the GDP growth was pegged at 7 to 7.5 per cent in FY19. In between, encouraging earnings announcement kept the momentum going. However profit taking continued on broader front. It’s the handful of index majors which are pushing the Nifty higher while the broader market is reeling under pressure. Such divergence does not last for long and eventually they’ll align.”
“The survey also highlighted that against the emerging macroeconomic concerns, policy vigilance will be necessary in the coming year, especially if high international oil prices persist,” said Karthikraj Lakshmanan, Senior Fund Manager, BNP Paribas Mutual Fund.
Maruti Suzuki emerged as the top performer among Sensex components, climbing 3.85 per cent after the company reported 2.96 per cent increase in net profit for the third quarter ended December 2017. HDFC rallied 2.66 per cent after the company reported over two-fold jump in its consolidated net profit. Other major gainers were TCS, Hero MotoCorp, Kotak Mahindra Bank, Hindustan Unilever, Tata Steel, Bajaj Auto and HDFC Bank.
Dr Reddy’s, Bharti Airtel, ITC, Yes Bank, ONGC, Axis Bank and SBI ended in the negative zone, falling up to 5.92 per cent.
The BSE auto index gained the most at 1.60 per cent, followed by IT 1.16 per cent, teck 0.92 per cent, consumer durables 0.60 per cent, metal 0.24 per cent, capital goods 0.17 per cent and bankex 0.14 per cent. The broader markets were under pressure as investors trimmed their positions at higher levels. The BSE small-cap index declined 1.10 per cent, while the mid-caps fell 0.73 per cent.