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Sensex, Nifty scale new highs in 2017: How major indices fuelled the rally

While the Sensex is up 27.94% or 7,440 points since the beginning of this year, the Nifty has gained 28 percent or 2,296 points.  The BSE midcap and smallcap indexes too rose 58% and 61 percent, respectively.

Aseem Thapliyal        Last Updated: December 27, 2017  | 15:46 IST
Sensex, Nifty touch new highs: How major indices fuelled the rally

The Sensex and Nifty are hovering near their all-time highs with two more trading sessions left in 2017.

Today, the Sensex rose 127 points to 34,137, its highest ever level on hopes of reforms by the Narendra Modi government, particularly on the rural front ahead of Budget 2018.   

The Nifty too reached its all-time high level of 10,548 level on Tuesday, marginally short of the key 10,550 level.

While the Sensex is up 27.94% or 7,440 points since the beginning of this year, the Nifty has gained 28 percent or 2,296 points.  The BSE midcap and smallcap indexes too rose 58% and 61 percent, respectively.

The Sensex is up over 1,400 points since December 18, 2017 when the index fell after early vote counting trends indicated Congress giving tough competition to BJP in Gujarat Assembly elections.  The BJP eventually won polls in both states with Congress left with power in just four states.

The positive market sentiment arising out of BJP's victory led the market participants to believe more reforms were on anvil ahead of the Budget 2018. Some even concluded BJP's poor show in Gujarat's rural areas may prompt the government to announce some sops for the farm sector, thus raising rural demand in villages. This led to the last lap of rally which took  Sensex above 34,000 level.

Several events, quarterly earnings and key developments such as election results led the indexes to their all-time highs this year.

Their impact was felt across sectoral and broad real time indexes. Here's a look at how these indices contributed to the Sensex and Nifty rally.

Realty stocks: Realty stocks too have fuelled the rally of key indices with the BSE realty index delivering nearly 89 percent returns since the beginning of this year.  The index has firms such as DLF HDIL, and Indiabulls Real Estate among others.   The Index which closed at 2537 on Tuesday was trading 0.85 percent lower at 2515 level. It touched a 52 week high of 2555 level today.

Consumer durables goods stocks: The key sectoral index which has firms such as PC Jeweller, Bajaj Electricals, Blue Star, Titan and Crompton Greaves rose nearly 89 percent this year.  The index which closed at 22,592 is down 0.70 percent to 22,435 level.

Metal stocks: The index has gained nearly 100 percent since the beginning of this year.  The metal stocks index has key stocks such as SAIL, Vedanta, Jindal Steel and NMDC. The index was trading 0.20 percent higher at 14,737 level.

BSE Basic Materials: The index is up over 103 percent since the beginning of this year. The index which has key stocks such as ACC, Ambuja Cements, Bhushan Steel, Hindustan Zinc, Tata Steel and Vedanta was trading 4 points higher at 3515 level.

Oil and gas stocks: The index is up nearly 72 percent since the beginning of this year.  RIL, ONGC, Indian Oil, GAIL, BPCL and Oil India are among the key constituents of the index.  It closed at 16568 level on Tuesday and was trading 0.81 percent lower at 16, 433 today.

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