Indian stocks continue record run on macro data and earnings optimism

Stocks built on gains to close at fresh life-time highs in their record setting spree for a third straight session on Monday after buying in banking, financial, metal and energy counters triggered by better- than-expected macro data and corporate earnings.

The benchmark BSE Sensex rose 251.12 points to end at a new peak of 34,843.51. The broader Nifty gained 60.30 points to finish at fresh record high of 10,741.55. Domestic sentiments were upbeat on positive macro data, which were announced after trading hours on Friday and encouraging earnings posted by some blue-chip companies coupled with a firming trend at other Asian bourses.

The industrial production (IIP) growth soaring to a 17- month high of 8.4 per cent in November despite retail inflation spiking to 5.21 per cent in December bolstered the market sentiment.

Meanwhile, WPI inflation fell to a three-month low of 3.58 per cent in December, which assuaged price rise worries.

“A series of positive factors such as strong liquidity on unabated pumping of funds by DIIs and positive cues from global markets drove markets to new highs,” said Manoj Choraria, a Delhi-based stock broker.

“Markets traded jubilant and ended with decent gains, in continuation to the uptrend. Sentiment boosted on upbeat IIP data and supportive global cues. Banking and financial counters were in the limelight along with select stocks from media,” said Jayant Manglik, President of Religare Broking Ltd. The BSE 30-share Sensex resumed higher at 34,687.21 and advanced to touch a new all-time, intra-day high of 34,963.69, surpassing its previous record of 34,638.42, clocked in Friday's trade.

Profit booking at record levels erased some of the gains at fag-end and the index settled at record close of 34,843.51. The broader NSE Nifty zoomed past the 10,700-mark for the first time to hit an all-time high of 10,782.65 before ending at a new peak of 10,741.55, up 60.30 points, or 0.56 per cent.

HDFC emerged as the best performer by climbing 6.17 per cent to its 52-week high after the company said it plans to raise up to Rs 130 billion via a QIP issue.

Infosys ended higher by 0.19 per cent after it maintained its FY2017-18 sales growth outlook. Among banking stocks, ICICI Bank, HDFC Bank, Kotak Bank and Axis Bank rose up to 3.73 per cent. Other big gainers were Tata Steel, Power Grid, Asian Paint, NTPC, SBI and Reliance Industries, rising up to 1.58 per cent. Furthermore, most Asian markets ended in the green and European markets were flat in early deals, following a weekend record closing on Wall Street on the back of optimism about corporate earnings. Japan's Nikkei rose 0.26 per cent, while Sydney advanced 0.1 per cent, Seoul and Singapore were each up 0.3 per cent. Hong Kong’s Hang Seng however shed 0.23 per cent to end its record rally in new year but investors were optimistic over the index breaching its 2007 life time high.

In sector terms, the finance surged the most by gaining 1.53 per cent, followed by bankex 1.25 per cent, consumer durables 1.13 per cent, power 0.29 per cent, metal 0.22 per cent and realty 0.10 per cent. Auto, oil & gas, infrastructure, IT, teck, capital goods, healthcare and PSU sectoral indices ended in the red. Towards the broader markets, a mixed trend emerged with the smallcap index rising by 0.27 per cent as investors raised their bets while midcap index shed 0.04 per cent on profit- booking.