Banking and information technology (IT) stocks led the rally as Sensex and Nifty hit their all-time high in trade today. While BSE bankex gained 761 points to 31,505 compared to earlier close of 30,744, BSE IT index rose 463 points to 22170 against previous close of 21,707.
This led the Sensex to hit record high of 42,566. Nifty too hit its all-time high of 12,451 in early trade.
All 19 sectoral indices except healthcare were trading in green on BSE.
IT stocks rose after challenger Joe Biden was declared winner against Donald Trump in the US Presidential election this weekend.
IT sector stocks have risen for the fifth straight session on hopes Joe Biden is set to win the election. On November 3, BSE IT index stood at 20,889. It has risen 1281 points in five sessions since then.
Trump has been implementing policy of 'America First' and announced plans to sharply limit visas issued to skilled workers from overseas to enable job creation for locals hit by the coronavirus pandemic. This would adversely hit Indian IT companies who send their workers to US through H-1B visa route. However, Biden's stance on the work visas is likely to favour Indian IT workforce.
According to reports, the Biden government is likely to reverse some of the decisions of the outgoing Trump rule, including that of the H-1B.
On the other hand, BSE bankex has gained 4117 points since October 30 on the back of strong Q2 earnings. On October 30, the index stood at 23,900. It hit an intra day high of 31,505 in trade today.
Strong earnings by lenders such as ICICI Bank, SBI and Axis Bank have boosted banking stocks for the sixth straight session. Other sectoral gainers were BSE consumer durables index rising 198 points to 25,511 and oil and gas index gaining 169 points to 12,517 in trade today. On Sensex, shares of Bharti Airtel, ICICI Bank, Axis Bank and Bajaj Finance rose up to 3.55% in afternoon session.