The market closed at fresh record highs today as Q1 earnings boosted sentiment on Dalal Street aided by record domestic institutional investors inflows (DII) this year. While, the Sensex closed at record high for the 21st time, the Nifty scaled new peaks for the 15th time in 2018 today.
The Sensex finally settled at 37,336.85, up 352.21 points, or 0.95 per cent-breaching its previous closing record of 36,984.64 reached yesterday.
Nifty closed at a record high of 11,278.35, rising 111.05 points, or 0.99 per cent.
Vinod Nair, Head of Research at Geojit said, "Better Q1FY19 results from heavy weights and outperformance of PSU banks coupled with appreciation in rupee supported the main indices to touch another high. In the near term, the momentum will also depend on the outcome of RBI meet (August 1), were consensus is showing 25 bps rate hike. Factors such as inflation, direction of rupee and fluctuation in oil price will be the detrimental factors. However, growth and earnings outlook is showing signs of pickup which will restore investors' confidence in the market."
The benchmark indices hit their lifetime highs today with the Sensex touching the 37,368 mark and Nifty rising to fresh high of 11,283 level.
Bank Nifty rose to record closing high of 27661 level intra day and later closed at 27634, a rise of 228 points to 27,634 level.
Better-than-expected quarterly earnings by select index heavyweights, easing of US-EU trade tensions and firm foreign capital inflows boosted investor sentiment, brokers said.
ITC (5.24%), Tata Motors (3.56%) and Tata Steel (2.71%) were the top Sensex gainers.
The ITC stock rose up to 6.92 per cent to touch a high of Rs 307 on the BSE. Following the spike in the counter, the market capitalisation of the company stood at Rs 3,69,564.63 crore.
ITC on Thursday reported a 10% rise in standalone net profit at Rs 2,818.68 crore for the first quarter ended June 30, 2018, aided by lower expenses, good growth in agri-business and other FMCG business despite decline in cigarettes sales.
"Positive change in markets' perception of BJP's performance in 2019 after the non confidence motion, improving corporate results, crude off its recent highs (down 8% from its recent high of $80 a barrel), reduction in the MF classification-related sales and margin calls, and short covering by bears has lifted the markets to new record highs," said VK Sharma, Head, PCG & Capital Market Strategy at HDFC Securities.
Domestic institutional investors (DIIs) have led the market to record highs by pumping record Rs 62,770.16 crore this year till June compared with Rs 21,244.19 crore inflows in the same period last year.
FIIs withdrew Rs 33,375.74 crore till June this year compared to Rs 22,145.18 crore inflows for the same period last year.
Of 30 Sensex stocks, 20 closed higher.
Top Sensex losers were PowerGrid (1.72%), Adani Ports (1.44%) and Coal India (1.04%).
Among BSE sectoral indices, consumer durables stocks led the gains with 411 points or 2.03% gain at a record closing of 20,630.
Oil and gas and metal indices on BSE rose 1.69% or 246 points and 1.89% or 232.18 points, respectively.
Market breadth was positive with 1,665 stocks closing higher compared to 970 ending in the red on BSE.
Gaurav Jain, Director at Hem Securities said, "The coming week seems to have a good flow of earnings. We will continue to see stock specific approach as heavyweights like HDFC, Axis Bank, Escorts, Shree Cement, Tech Mahindra, BEL, Dabur are scheduled to report their quarterly earnings. Nifty can hit a target of 11400 points."
Foreign portfolio investors (FPIs) bought shares worth a net Rs 2,453.57 crore, while domestic institutional investors (DIIs) sold equities worth Rs 2,716.04 crore yesterday, provisional data showed.
Coming to the global markets, most Asian markets ended mixed while European shares were up in their early deals amid signs of rapprochement between the US and EU in their trade dispute.
The European Central Bank left interest rates unchanged and affirmed its plan to end its monthly bond-buying program in December, as had been expected. ECB President Mario Draghi said that uncertainty around the inflation outlook was receding.
In the Asian region, Japan's Nikkei rose 0.56 per cent and Hong Kong's Hang Seng inched up 0.08 per cent. Shanghai Composite Index, however, fell 0.30 per cent and Singapore lost 0.11 per cent.
European shares were in better shape in their late morning deals. Frankfurt's DAX was up 0.55 per cent, while Paris CAC 40 gained 0.24 per cent. London's FTSE too was up 0.53 per cent.
Written and edited by Aseem Thapliyal