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Sensex rises 442 points, Nifty closes shy of 11,700 level; PowerGrid, ICICI Bank, Bharti Airtel top gainers

While the Sensex closed 442 points or 1.16% higher at 38,694 level, the Nifty ended the day at 11,691 level, rising 1.17% or 134 points. Meanwhile, the Sensex hit an all-time high of 38,736, Nifty rose to a record 11,700 level intra day. Of 30 Sensex stocks, 29 closed in the green.

twitter-logo BusinessToday.In        Last Updated: August 28, 2018  | 09:26 IST
Sensex rises 442 points, Nifty closes shy of 11,700 level; PowerGrid, ICICI Bank, Bharti Airtel top gainers

The Sensex and Nifty closed at fresh record highs in trade today on positive global markets after US Federal Reserve chief Jerome Powell said a gradual approach to raising rates was best to protect the US economy and job growth.

While the Sensex closed 442 points or 1.16% higher at 38,694 level, the Nifty ended the day at 11,691 level, rising 1.17% or 134 points.

Meanwhile, the Sensex hit an all-time high of 38,736 and Nifty rose to a record 11,700 level intra day. Of 30 Sensex stocks, 29 closed in the green.

PowerGrid (3.64%), ICICI Bank (2.97%) and Bharti Airtel (3.93%) were the top Sensex gainers.

Vinod Nair, Head of research at Geojit said, "Optimism led by earnings growth persuaded the foreign investors to come back to the Indian market after a gap of two to three months. Mutual funds continue to be positive but factors like volatility in oil prices, depreciation of INR and some reduction in retail investment is reducing their net inflows. In overall, continued buying by FIIs and DIIs is adding market's liquidity overriding global headwinds like trade tensions and currency war, sectors under beneficiaries are banks, IT and metals."

Sensex heavyweight Reliance Industries hit an all-time high of 1296 level amid news its telecom venture Jio beat Vodafone to become the second-largest telco by revenue market share, closing the gap with market leader Bharti Airtel on this front.

Mustafa Nadeem, CEO at Epic Research said, "Equity markets marked a fresh all-time high as positive sentiments that were there even before the market opened. The global cues were largely positive with Asian markets up 1% to 2% as China's Hang Seng was leading. This resulted in a positive open and it was a splendid performance by firstly the large caps. ICICI Bank, Infosys, SBI, and Reliance alone garnered half a percent gain for Nifty while TCS, Kotak, and L&T followed suit.

Secondly, we have seen the Nifty Bank which was under performing, the Index and it was seen among leaders today covering its previous week losses adding whopping 430 points. Most sectors were positive adding 1.5% to 3% gain and this is what the market needed after a recent consolidation; Improved breadth. This momentum has kicked in further flow into equities and we may see Nifty extending gains to 11,800 - 11,820."

BSE mid cap and small cap indices gained 177 points and 117 points, respectively.

Banking and consumer durables stocks led the rally with the BSE Bankex rising 530.08 points or 1.69% and BSE consumer durables index gaining 224 points or 1.04%.

Of 19 BSE sectoral indices, 18 closed in the green.

Mayuresh Joshi, fund manager at Angel Broking said, "The rally in the Sensex  has been continuing despite macro headwinds globally. That is largely due to the front ending of rates done by the RBI in its August policy. With robust inflows into equity funds the domestic flows counter balance. This has kept the rally going. However, there are some concerns too. Global oil prices are still hovering higher and domestic inflation is getting tighter. The MSP will only worsen inflation. Above all rupee is weak."

Bank Nifty too rose to 28,264 level gaining nearly 429 points in trade today.

Positive leads from other Asian markets tracking weekend gains on the Wall Street after comments from US Federal Reserve Chairman in support of a gradual approach to raising rates bolstered trading sentiments, brokers said.

Market breadth was positive with 1451 stocks closing higher compared to 1265 stocks ending lower on the BSE. Domestic institutional investors (DIIs) bought shares worth a net of Rs 904.75 crore, while foreign portfolio investors (FPIs) sold shares worth a net of Rs 75.78 crore on Friday, provisional data showed.

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