According to traders, a firming rupee, improving domestic inflation data and continued buying by foreign investors also supported investor sentiment.
In volatile trade, the Sensex climbed 248.84 points, or 0.40 percent, to close at 61,872.99. With this, the Sensex crossed its previous record level of 61,795.04 points on 11 November. During the trading, the Sensex had climbed up to 61,955.96 points at one point.
The National Stock Exchange’s Nifty also closed at 18,403.40 points with a gain of 74.25 points, or 0.41 percent.
Vinod Nair, Head of Research, Geojit Financial Services, said, “A positive trend in global markets turned losses in early trade into gains in domestic stocks. Buying in banking stocks also supported the market.
“The fall in the prices of food and commodity products has helped in keeping the domestic inflation below 7 per cent,” he said. However, retail inflation continues to remain above the RBI’s comfortable level of 6 per cent. It is likely to soften from the first quarter of the next financial year itself.
Power Grid was the biggest gainer of 2.20 per cent among Sensex companies. ICICI Bank, Bharti Airtel, UltraTech Cement, SBI, Dr Reddy’s, Titan, M&M and HDFC Ltd and HDFC Bank were the major gainers.
On the other hand, ITC, Reliance Industries, Bajaj Finserv, Sun Pharma and Nestle India closed with losses.
In the broad market, the BSE Midcap index closed with a marginal gain of 0.08 percent and Smallcap by 0.01 percent.
“With signs of easing domestic inflation, traders expect RBI to take a dovish stance on rate hike in the next monetary policy committee meeting,” said Shrikant Chauhan, head of retail research at Kotak Securities Ltd.
In other Asian markets, South Korea’s Kospi, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng were among the gainers.
Major markets in Europe were up in early trade. The US market Wall Street closed in decline on Monday.
Meanwhile, international oil benchmark Brent crude fell 1.62 per cent to $91.63 per barrel.
According to stock market data, the buying spree by foreign institutional investors is continuing. He bought shares worth Rs 1,089.41 crore on Monday.
Source: navbharattimes.indiatimes.com
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