Sensex Extends Record-breaking Run; Autos, Banks Rally
The BSE Sensex continued with its record setting spree to quote at an all-time high of 30,346.69 while the NSE Nifty scaled a new peak of 9,450.65 in opening trade on Thursday on sustained fund inflows, largely driven by forecast of a normal monsoon, amid positive Asian cues.
Mumbai: Indian shares extended their record-breaking run on Thursday with auto stocks rallying on expectations of lower interest rates after a better monsoon forecast eased inflation fears in a country that depends heavily on rains to irrigate its farmlands.
Strong regional markets, tracking a record high close on MSCI's global stocks benchmark following strong gains in oil prices, also helped sentiment.
The broader NSE Nifty rose as much as 0.46 percent to 9,450.65, while the benchmark BSE Sensex gained as much 0.39 percent to 30,366.43, hitting record highs for a second consecutive day.
The NSE Auto index gained 1.02 percent, led by gains in Eicher Motors, up as much as 3.84 percent at 28940 rupees, its highest ever.
Earlier in the week, the head of the country's weather office, forecast a higher monsoon rainfall as concerns over the El Nino weather condition eased, raising prospects of higher farm and economic growth.
A better-than-expected monsoon could also keep inflation in check, reducing the prospects of a tighter interest rate regime.
"The main reason for yesterday's and today's rally on the indexes is the positive monsoon rainfall forecast," said Siddharth Sedani, head and vice president, equity advisory at Anand Rathi.
The monsoon delivers about 70 percent of India's annual rainfall and is a critical factor as nearly half of the country's farmland lacks irrigation.
Two-wheeler maker Hero MotoCorp Ltd was up 2.1 percent while rival Bajaj Auto Ltd rose 2 percent on hopes good monsoon rains will boost sales, especially in the rural markets. TVS Motor Co ltd gained 1.03 percent.
Banks also gained as investors pinned their hopes on easing bad loans in coming quarters after the government tweaked its laws last week to help tackle the record $150 billion in troubled bank debts.
"The ordinance is definitely having a positive impact," Sedani said.
The Nifty PSU bank index rose as much as 0.91 percent. State Bank of India and Bank of Baroda climbed 0.8 percent and 1 percent, respectively.
The NSE index was last up 0.42 percent while the BSE index was last up 0.36 percent.
Recommended For You
- We Produced More Pace – Whatmore Basks in Historic Kerala Win
- Netflix’s Sex Education Makes You Awkward and Then Gives Solution
- Propaganda with Films will not Affect the Outcome of Elections: Prakash Jha on Uri, Accidental PM
- 'Nobody Has All of These': This Trending Post is the Internet's Diss List
- Exclusive - Upcoming Mahindra XUV300 Compact SUV Spied Testing Ahead of Launch on 14th February
- 01 d
- 12 h
- 38 m
- 09 s