Stock markets on Monday started the new financial year on a bullish note with both Sensex and Nifty indices closing at record highs as the sentiment was lifted by a surge in foreign investments last month amid expectations of government reforms and an improving economy. The Sensex which is just 90 points away from the 30,000 mark is expected to hit the milestone in the coming days. The Sensex resumed higher at 29,737.73 and hovered in a range of 29,926.94 and 29,705.72 before closing at a record high of 29,910.22, showing a gain of 289.72 points, or 0.98 per cent — also its single day biggest gain since March 14 this year. The previous closing high for Sensex was 29,681.88 logged on January 29, 2015.
The NSE 50-share Nifty also rose by 64.10 points, or 0.70 per cent, to end at an all-time closing high of 9,237.85 after moving in a range of 9,245.35 and 9,192.40.
Surrendering its earlier gain, the rupee closed at 65.03, down 0.25 per cent from its Friday’s close of 64.85. The rupee opened at 64.79 a dollar and touched a high of 64.76, a level last seen on October 2015. Traders are cautious ahead of the Reserve Bank of India’s (RBI) bi-monthly two-day policy meeting on April 5 and 6.
According to dealers, the latest Nikkei India Manufacturing PMI which increased to a five-month high of 52.5 in March from 50.7 in February, indicating a further improvement in the health of India’s manufacturing sector, boosted the sentiment. The fast paced developments on the GST resolution and improved global scenario after last week’s worries regarding the US healthcare bill also strengthened the benchmark indices.
Anand James, Chief Market Strategist, Geojit Financial Services, said, “PMI data showing expansion in manufacturing activity has boosted expectations towards Q4 numbers giving more legs to the ongoing rally. Hopes of measures NPA resolution also kept banking stocks maintains its uppish streak.”
RIL shares jumped 3.94 per cent to Rs 1,371.20 after its telecom unit Jio extended its subscription for Prime membership and offered a complimentary service for three months. Larsen and Toubro emerged as the top gainer by surging 5.26 per cent to Rs 1,660.65. However, Infosys slipped by 1.11 per cent to Rs 1,009.45 after a fresh row erupted between some founders and the top management of the company.
The BSE capital goods index gained the most by surging 3.47 per cent, followed by healthcare index 1.05 per cent, Oil&Gas index 0.77 per cent, banking index 0.67 per cent, consumer durable index 0.62 per cent and auto index 0.40 per cent.
Vinod Nair, Head of Research, Geojit Financial Services, said, “the market was very eagerly looking at how the implication of GAAR will impact in the financial year of 2018. And the start to year has been encouraging as the market continued to re-construct new highs with growing inflow of foreign funds in expectation of government’s reforms & growth prospects.”