7-day rally takes key indices to fresh highs

Mumbai: Equity benchmarks Sensex and Nifty rallied for the seventh straight session to hit fresh lifetime highs on Wednesday, driven by gains in index majors Reliance Industries, ITC and L&T amid persistent foreign fund inflows. Besides, receding crude oil prices in international markets also boosted sentiment, traders said. The 30-share BSE Sensex surged 357.59 points, or 0.52 per cent, to settle at a new record of 69,653.73. The barometer rose to 69,744.62 during intra-day. The broader index Nifty also climbed 82.60 points, or 0.40 per cent, to hit its fresh peak of 20,937.70 points.

“Post-state elections, market optimism thrives, confirming policy continuity and meeting investor expectations. A robust FII reversal is fuelled by receding inflation and dropping yields in US and Indian markets. The allure of Indian market gains post-China credit rating downgrade and decline in oil prices was followed by ease in geopolitical tensions,” said Vinod Nair, head (research) at Geojit Financial Services.

“A strong rebound in IT, driven by reduced US recession risks and in anticipation of robust summer demand, fuels the momentum in the power sector,” Nair said. However, he cautioned that short-term profit booking may occur due to domestic premium valuation concerns.