The Sensex and Nifty continued their rally in early trade today despite flow of negative news on macroeconomic front on Thursday. While the Sensex rose 174 points or 0.48% to 36,723 level, the Nifty climbed 35 points or 0.32% to 11,058 level.The Sensex hit a fresh life-time high of 36,740 in trade today compared to 36,699 level which the index touched in intra day trade yesterday. The Nifty was trading nearly 100 points lower from its all time high of 11,171 level reached on January 29, 2018.
Inflow of negative news on inflation and IIP failed to affect the market rally.
According to data announced after market hours on Thursday, retail inflation soared to 5 per cent in June compared to 4.87 per cent seen in May. The latest jump in consumer inflation to a five-month high comes on the back of a depreciating rupee and skyrocketing fuel prices.
Index of Industrial Production (IIP) declined to a seven-month low of 3.2 per cent in May as compared to 4.8 per cent in April, mainly due to slow manufacturing activity and sluggish performance of power sectors, and the FMCG sector.
Yesterday's market mover Reliance Industries rose 1.22% to 1096 level on the BSE.
Infosys which will announce its Q1 earnings today was trading 1.29% higher to 1311 level on the BSE.
Meanwhile, Wipro (3.33%), Reliance Industries (1.58%) and Infosys (1.48%) were the top Sensex gainers.
SBI (1.54%), ICICI Bank (1.38%) and Axis Bank (1.16%) were the top Sensex losers.
Rusmik Oza, Senior Vice President (Head of PCG Research) at Kotak Securities said,"The last five hundred points rally in Nifty has been led by eight stocks (TCS, Reliance Ind., HDFC twins, Kotak Mahindra Bank, Infosys, HUL & Maruti Suzuki). These stocks account for 44% of Nifty-50 market cap and are up by 10% on an average since May 23 when Nifty was below 10,500 level. The currency depreciation has helped IT stocks deliver handsome returns in the last one month. Valuations are rich hence upside could be limited. One a one year forward Nifty EPS of Rs 576 it trades at 19x, which is quite rich and one standard deviation above the 10 year average. We expect Nifty to pause at Rs 11,200 which was the previous peak".
Market breadth was negative with 683 stocks rising compared with 836 falling on the BSE.
IT stocks were the top gainers ahead of Infosys Q1 earnings to be announced today.
The BSE IT index rose 0.98% or 141 points 14,477 level. BSE bankex which led the rally yesterday saw profit booking and was trading 60 points lower to 29,898 compared to previous close of 29,959.
DIIs bought shares worth a net of Rs 366.40 crore, while foreign portfolio investors (FPIs) sold shares worth a net of Rs 742.63 crore yesterday, provisional exchange data showed.
Asian shares are mostly higher, rebounding from jitters over the US-China trade disputes for a second straight day.
Japan's Nikkei 225 jumped 1.3 percent to 22,483.13 and South Korea's Kospi gained 0.8 percent to 2,302.32. Hong Kong's Hang Seng index added 0.3 percent to 28,578.86. But Shanghai Composite Index in mainland China fell 0.6 percent to 2,821.73. In Australia, S&P-ASX 200 dipped 0.2 percent to 6,255.10. Stocks in Singapore, Taiwan and other Southeast Asian markets were higher.
US stocks finished higher on Thursday led by tech companies. The S&P 500 index rose 0.9 percent to 2,798.29. The Dow Jones Industrial Average gained 0.9 percent to 24,924.89. The Nasdaq jumped 1.4 percent to 7,823.92, closing at an all-time high. The Russell 2000 index of smaller-company stocks added 0.4 percent to 1,690.28.