Sensex, Nifty end at record high

Both indices have gained in four of the previous five weeks

The benchmark BSE Sensex on Friday gained 112 points, or 0.33 per cent, to log its second straight weekly gain. Upmove in banking stocks, including State Bank of India (SBI) and Axis Bank, saw the index close at a new record high of 33,685. The Nifty 50 index gained 29 points, or 0.28 per cent, to settle at 10,452.5, a new all-time high. Both the Sensex and the Nifty have gained in four of the previous five weeks. 

Since October 1, the Sensex has gained over 2,400 points, or 7.7 per cent, on hopes of an improving economy and better corporate earnings. The gains have been driven by strong buying by mutual funds. Foreign institutional investors (FIIs), too, have joined the party, buying shares worth more than Rs 10,000 crore in the past seven sessions. 

Market players said the September quarter earnings were supporting the optimism. Of the 32 companies on the NSE Nifty 50 index that have announced results, 21 have either met or exceeded analysts’ expectations, data compiled by Bloomberg show. 

“The market witnessed a strong upmove, led affirmative signs of recovery in domestic earnings and rally in index heavyweights. Strong core industries data, the US Federal Reserve’s status-quo on interest rate and positive global cues supported this trend. The concerns over domestic premium valuation took a back seat,” said Vinod Nair, head of research, Geojit Financial Services.

Shares of SBI gained 3.2 per cent, the most among the Sensex firms. Axis Bank added two per cent. Tata Motors gained three per cent and Larsen & Toubro added two per cent.

The key beneficiaries of the government’s stimulus package are witnessing a strong buying interest, analysts said.

BSE Q2 profit up 4% 

The BSE’s September-quarter net profit increased four per cent to Rs 66.8 crore, from Rs 63.9 crore a year ago. Revenue from operations for the quarter rose 22 per cent to Rs 110.75 crore, from Rs 90.9 crore in the year-ago period. Net profit for the half year ended September grew 448 per cent to Rs 590.5 crore, from Rs 107.7 crore in the corresponding period of the last year. Half-yearly revenue was up 24 per cent at Rs 213.4 crore, against Rs 172.1 crore a year ago.