Sensex, Nifty touch record highs ahead of Union Cabinet reshuffle
Tata Steel topped the Sensex gainer charts with a rally of 4.38%, followed by Bajaj Finserv, IndusInd Bank, HDFC, Nestle India and Asian Paints.
The stock benchmark Sensex jumped 194 points, closing above the 53,000 mark for the first time on Wednesday, July 7, fueled by metal, financial and banking stocks as investors were in buy mode ahead of a union cabinet reshuffle.
However, a weakening rupee and lackluster global signals limited profits, traders said. After a bumpy start, the 30-share BSE Sensex climbed 193.58 points, or 0.37%, to close on its new lifetime high of 53,054.76. Likewise, the broader NSE Nifty rose 61.40 points, or 0.39%, to its record high of 15,879.65.
Tata Steel topped the Sensex gainer charts with a rally of 4.38%, followed by Bajaj Finserv, IndusInd Bank, HDFC, Nestle India, Asian Paints, Sun Pharma and PowerGrid.
On the flip side, Titan, Maruti, Reliance Industries, M&M, Tech Mahindra and Bajaj Auto were among the laggards, slipping to 2.06%.
“Markets rebounded into positive territory in afternoon trading, led by metal stocks. Today’s cabinet reshuffle has caught the interest of market participants as we saw some hectic activity at smaller private banks,” said S Ranganathan, head of research at LKP Securities.
Vinod Nair, Head of Research at Geojit Financial Services, said, “Global markets were mixed ahead of the FOMC protocol as investors favored safe bonds and dollars. Healthy pre-sale numbers increased buying interest in real estate stocks, while metal stocks followed the trend. “
The BSE metals, real estate, basic materials, capital goods and financial indices rose as much as 2.31% while consumer staples, energy, oil & gas, auto and utilities all saw losses.
The broader BSE midcap and smallcap indices rose to 0.58%.
Global share prices were subdued prior to the release of the minutes of the recent Federal Reserve meeting. In Asia, the Hong Kong, Seoul and Tokyo stock exchanges ended in the red, while Shanghai was positive. Stocks in Europe traded with gains in mid-session.
Meanwhile, the international oil benchmark Brent crude rose 1.64% to $ 75.75 a barrel.
The rupee weakened 7 paises and ended Wednesday at 74.62 against the US currency as a stronger dollar and rising crude oil prices weighed on investor sentiment.
Foreign institutional investors were net sellers in the capital market on Tuesday when they sold shares valued at Rs 543.30 billion, according to stock market data.