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Sensex, Nifty close at all-time highs: Five reasons why markets rose today

The 30-share BSE Sensex rallied 387.14 points or 1.17 percent to 33,600.27 and the 50-share NSE Nifty rose 105.20 points or 1.02 percent to 10,440.50, after hitting an intraday record highs of 33,651.52 and 10,451.65, respectively. Market breadth was positive with 1,516 stocks closing higher against 1,274 stocks ending lower on the BSE.

BT Online        Last Updated: November 1, 2017  | 17:30 IST
Sensex, Nifty close at all-time highs: Five reasons why markets rose today

The Sensex and Nifty welcomed India's giant leap on World Bank's ease of doing business rankings on Wednesday and closed at their all-time highs. The 30-share BSE Sensex rallied 387.14 points or 1.17 percent to 33,600.27 and the 50-share NSE Nifty rose 105.20 points or 1.02 percent to 10,440.50, after hitting an intraday record highs of 33,651.52 and 10,451.65, respectively.

Market breadth was positive with 1,516 stocks closing higher against 1,274 stocks ending lower on the BSE.

Also read: Sensex closes at 33,600 level for first time, Nifty rises to 10,440; Bharti Airtel top gainer

We look at five reasons why Sensex, Nifty closed at their record highs today.

Ease of doing business rankings: For the first time ever, India jumped 30 positions to become the top 100th country in terms of ease of doing business ranking this year. This was announced by the World Bank Group's latest Doing Business 2018: Reforming to Create Jobs report in Delhi on 31, October 2017. The World Bank has attributed the change in India ranking to the sustained business reforms it has undertaken ever since Modi government took charge a little over three years ago. The market turned buoyant and welcomed the change in rankings.

Bharti Airtel: The stock of country's largest telco hit a fresh 10-year high in Wednesday's trade after the firm announced earnings which came below estimates for India market. The stock seems to have received a boost from stellar performance in Africa market and prospects of reaping huge gains from the sale of stake in mobile tower unit Bharti Infratel. The firm was approached by global investors interested in a controlling stake in Bharti Infratel, Airtel said on Tuesday. The stock closed 8.19 percent or 40.75 points at 538 level on the BSE.

Strong macroeconomic data: On the economic front, eight core sectors, which comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP), grew to a six-month high of 5.2 per cent in September, driven by a strong performance in coal, natural gas and refinery segments.

The combined Index of Eight Core Industries stands stood at 122.5 in September 2017. The eight core industries, which include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - had witnessed a growth of 5.3 per cent in September last year.

Positive Global cues:  Oil prices extended a bull run on hopes that major producers would maintain their output cuts. The dollar firmed ahead of a Fed rate decision and digital currency bitcoin surged to a record high.

The pan-European STOXX 600 index climbed to its highest level since August 2015 as stock markets in London, Paris and Frankfurt gained 0.5 to 1.2 percent in early trade.

That followed a rally in Asia, where stock markets hit 10-year highs. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 percent, led by a 1.3 percent jump in South Korea. Japan's Nikkei soared 1.9 percent.

Banking, metal stocks lead gains: Banking stocks led the gains in market today with the BSE Bankex rising 568 points or 2.01 percent at 28,867 level. Bank Nifty too rose nearly 471 points to breach the crucial 25,000 level to reach 25,490 mark.

Metal stocks too rose on Wednesday pushing the Sensex and Nifty higher.

The Nifty metal index rose 1.80% or 70 points at 3946 level. Metal stocks rallied on the BSE too with the BSE metal index closing 277 points or 1.89 percent higher at 15008.23 level.  SAIL (4.56 percent), Vedanta Ltd (3.48 percent) and Hindalco (3 percent) were the top gainers on the index.

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