Benchmark equity indices in India close at record highs

Indian markets ended at record highs today, led by gains in IT and metal stocks. The Sensex rose 259.97 points to a new closing high of 41,859.69.

The Nifty settled 0.6 per cent higher at 12,333, its first close above 12,333.

Among the Sensex 30 stocks, Infosys was the top gainer, rising 5 per cent. India’s second-biggest IT company, which announced its third-quarter earnings after market closing on Friday, said it found no evidence of financial misconduct by its executives following a investigation into whistleblower complaints. Infosys also delivered a Street-beating Q3 performance and also raised its revenue forecast for the year.

Sentiment was also lifted after index of industrial production (IIP) recorded a growth of 1.8 per cent in November, having contracted for three months in a row, according to government data, which was released on Friday.

It is a good sign for the economy as the index of industrial production (IIP) turns positive after three months of contraction.

Indian equities hit fresh lifetime highs on Monday supported by positive global and domestic cues. The official signing of Phase-1 of US-China trade deal, scheduled for January 15, coupled with recovery in the industrial production data lifted sentiment at D-Street today. Besides, healthy December quarter numbers by IT bellwether Infosys and appreciation of rupee to a one-month high kept sentiment buoyed.

Market participants were, however, eyeing consumer price index (CPI) inflation numbers for the month of December, slated to be released later in the evening.

The key Indian equity indices opened on a positive note on Monday with the NIfty50 on the National Stock Exchange and the BSE touching new record levels.

The Indian market opened in green during early morning trade with the Sensex moving up by 250 points on Monday.

The NIfty50 touched a fresh high of 12,333.45, while the Sensex touched a record level of 41,893.41 points.

At 9.27 am the Nifty traded at 12,333.45, higher by 76.65 points or 0.63 per cent from the previous close of 12,256.80 points. The BSE Sensex was trading at 41,848.76, higher by 249.04, points, or 0.60 per cent from the previous close of 41,599.72 points. It had opened at 41,788.21 and so far the intra-day low has been 41,720.76 points.

The rise in domestic stock markets came on the back of the gains in the Asian markets, analysts said.

Clean chit in whistle-blower issue is key positive and removes overhang on the stock, Centrum Broking said in a note.

Among other IT stocks, HCL Tech, Tech Mahindra, Wipro each advanced over 1 per cent while Tata Elxsi and NIIT Tech rose 5 per cent and 3 per cent respectively.

 “From the consumption point of view, it is welcoming that the consumer non-durables has turned positive. However, consumer durables are still in the negative territory, contracting for the last six months,” said Deepthi Mathew, economist at Geojit Financial Services.

Shares of Avenue Supermarts, which operates DMart stores, rose 2 per cent after delivering a strong Q3. The retailer’s revenue rose 23.9 per cent year on year to _6,752 crore while net profit recorded a 53 per cent growth at _394 crore.

Continuing their recent outperformance, midcap and smallcap stocks posted strong gains today. BSE midcap and smallcap indices rose 0.81 per cent and 0.93 per cent respectively. “We stick with our theme that 2020 will belong to the mid and the small cap stocks, as they vie for investor attention as the large caps consolidate,” HDFC Securities said in a note.

The benchmark S&P BSE Sensex scaled fresh peak of 41,899.63 in the early morning trade on Monday. The 30-share pack, however, settled the day at record closing high of 41,859.69 level, up 259.97 points or 0.62 per cent. Infosys closed the day as the top gainer, up over 4.5 per cent, followed by IndusInd Bank, Bharti Airtel, and HUL. On the downside, Tata Consultancy Services (TCS), SBI, and Axis Bank settled as top losers.

On the NSE, the broader Nifty50, too, hit a record high of 12,337.75, surpassing its previous high of 12,311 hit on Friday, January 10. At close, the index was at 12,329 level, up 72.20 points or 0.59 per cent.

Sectorally, all key indices managed to settle the day in the green. Nifty Realty index charged ahead during the fag-end of the session to close nearly 2 per cent higher. NIfty IT and FMCG indices were the second-best sectoral indices today, up over 1 per cent.

The broader markets outperformed the benchmarks today with the S&P BSE mid-cap index gaining for the fifth straight day to settle 0.80 per cent higher at 15,280.20 level.

Agencies