Markets at fresh lifetime peak on investor sentiment

Mumbai: Equity benchmarks advanced to fresh lifetime highs for the third session on the trot on Thursday, spurred by buying in energy, IT and auto counters amid persistent foreign fund inflows.

After rallying to its lifetime intra-day high of 41,719.29, the 30-share BSE Sensex settled 115.35 points, or 0.28 per cent, higher at its fresh closing record of 41,673.92.

Similarly, the broader NSE Nifty rose 38.05 points, or 0.31 per cent, to its new peak of 12,259.70. It hit an intra-day high of 12,268.35.

According to traders, after opening on a cautious note on news of US President Donald Trump's impeachment by the House of Representatives, domestic equities resumed their record-setting streak amid unabated foreign fund inflows.

"Despite premium valuation market is touching higher highs led by foreign inflows due to convictions of consistency in performance.

Union budget is likely to be crucial for the market on account of new policies and to attract investments," said Vinod Nair, Head of Research at Geojit Financial Services.

Investors are factoring a possible slippage in fiscal deficit due to slow pace in tax collection. Broad market performance is yet to match with the main indices, the main dichotomy being lag in credit growth and structural change in industries.

The progress in global sentiment will help risk taking ability of investors which will extend the liquidity to broad indices, Nair added.

Sectorally, BSE telecom, energy, auto, teck, IT, oil and gas, consumer durables and FMCG indices ended up to 1.98 per cent higher. However, finance, capital goods, realty, utilities and bankex settled up to 0.31 per cent lower.

Broader BSE midcap and smallcap indices gained up to 0.17 per cent.

On a net basis, foreign institutional investors bought equities worth Rs 1,836.81 crore, while domestic institutional investors sold shares worth Rs 1,267.57 crore on Wednesday, data available with stock exchanges showed.

Brent futures, the global oil benchmark, rose 0.12 per cent to $66.25 per barrel.