Sensex scales 54k for 1st time

Mumbai: Equity benchmarks clambered up to fresh lifetime highs on Wednesday, with the BSE Sensex surging past the 54,000-mark for the first time, as stellar earnings whetted risk appetite amid supportive global cues.

Banking and finance stocks saw hectic buying after largest lender SBI reported a 55 per cent jump in standalone net profit at Rs 6,504 crore for the June quarter, helped by a decline in bad loans. Surging for the third straight session, the 30-share BSE Sensex rallied 546.41 points or 1.02 per cent to end at its new record of 54,369.77, bettering the previous session's closing high.

It scaled its lifetime peak of 54,465.91 points during the session. Similarly, the broader NSE Nifty surged 128.05 points or 0.79 per cent to its all-time peak of 16,246.85 points. It touched a lifetime intra-day high of 16,290.20.

"Domestic equities extended gains with benchmarks Sensex and Nifty scaling fresh highs mainly on the back of sharp rebound in heavyweight financials. Financials were the sole driving force for the market rally, which was triggered after better-than-expected June quarter performance reported by SBI. Positive cues from global equities also lifted sentiments, said Binod Modi, head (strategy) at Reliance Securities.

Nimish Shah, Chief Investment Officer (listed investments), Waterfield Advisors, said: "Corporate results have come in-line with expectations across sectors. While the low base effect is influencing the year-on-year returns reported by large corporates, overall positive traction in the economy is turning out to be promising.

On the back of this optimism, markets have continued to see healthy flows from local investors. While the FIIs pulled out over Rs 11,000 crores from the equity markets, domestic institutions have pumped in Rs 21,000 crores in July 2021. It includes mutual funds' contribution of Rs 13,900 crore."

HDFC was the top performer in the Sensex pack, surging 4.77 per cent, followed by Kotak Bank, ICICI Bank, SBI, HDFC Bank and Axis Bank. On the other hand, Titan, Nestle India, UltraTech Cement, Sun Pharma, Maruti and Bharti Airtel were among the laggards, dropping up to 2.14 per cent.