The benchmark indices, Sensex and Nifty, on Monday hit new peaks and posted their best single-day gains in nearly five months, tracking positive global cues and gains in bank stocks. The BSE Sensex surged over 442 points to close at its life-time high of 38,694.11 and the broader NSE Nifty ended at a fresh record of 11,691.95, rising 134.85 points. Both indices recorded their biggest single-day gains in nearly five months. However, the rupee ended lower at 70.16/17 per dollar. The sentiment got a boost on unabated buying by domestic institutional investors (DIIs) and fresh foreign fund inflows amid better earning prospects for corporates. “Markets rallied to new high supported by positive global market followed by Fed’s comment on gradual pace of rate hike which boosted investors sentiment. The rally was broad-based given the sense of improved outlook on account of revival in earnings growth. Despite high valuations, continued buying by FIIs and DIIs adding liquidity in the market,” said Vinod Nair, head of research, Geojit Financial Services. Shares of public sector banks were in focus with Nifty PSU Bank index gaining more than 2 per cent on Monday ahead of the Allahabad Court verdict on stressed power assets. The Allahabad High Court later in the day refused interim relief to private power companies against the controversial RBI circular on stressed assets on Monday — the last day for finalising resolution plans for such assets. The high court order has mandated initiating insolvency proceedings by lenders against defaulting projects of companies. Last week, US Federal Reserve Chairman Jerome Powell had said that a “gradual approach” to interest rate hikes would be in the best interest of the US economy and jobs generation, lifting Wall Street sentiment at the week’s close. Asian shares too ended higher and European markets were firm in their early deals, tracking Friday’s gain in US stocks. Also, global markets reacted positively to the People’s Bank of China announcement that it was tweaking its methodology for the fixing of the yuan’s daily midpoint as part of efforts to stabilise the currency market.
