Sensex scales Mount 40K

Mumbai: Benchmark indices Sensex and Nifty on Monday logged their fresh lifetime closing highs on buying across the sectors, triggered by hopes of further rate cut by the RBI and continuity in reform measures by the new central government.

The 30-share BSE Sensex zoomed over 553 points to close at a record high of 40,267.62; while the 50-share Nifty surged nearly 166 points to settle at 12,088.55 -- all-time closing peak for the index.

Both indices also clocked their intra-day record highs by briefly touching 40,308.90 and 12,103.05, respectively, during the session.

Market analysts said Indian markets went against the trend seen on other bourses as investors were buoyed by falling crude oil prices, foreign fund inflows and hopes of rate cut by the Reserve Bank.

Besides, market participants are expecting more strong reform measures by the new NDA government after a landslide victory in the general election, they added.

Sectorally, BSE auto, healthcare, energy, consumer durables and metal were the top performers -- rising as much as 1.93 per cent. All the 19 sectoral indices closed with gains.

However, broader indices BSE midcap with 0.90 per cent rise and smallcap with 0.48 per cent gains underperformed the benchmark Sensex.

According to experts, investors lapped up stocks amid expectations of an interest rate cut by Reserve Bank of India (RBI) this week, especially after a disappointing GDP print for the March quarter.

The RBI may go for another round of rate cut, third in a row, on Thursday to prop up the economic growth which dropped to a five-year low in the final quarter of 2018-19, experts said.

The RBI's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy on Thursday. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews.

Besides, a strengthening rupee too boosted investor sentiment here, traders said. The Indian rupee appreciated by 44 paise to 69.26 against the US dollar on Monday.

Continuing the upbeat trend, foreign institutional investors bought shares worth a net Rs 3,068.88 crore on Monday, provisional data available with exchanges showed.

Meanwhile, other Asian bourses ended on a mixed note, while Europe was trading in the red in opening deals. Brent crude futures, the global oil benchmark, rose 0.39 per cent to $62.23 per barrel.