Sensex, Nifty hit new highs; monsoon, eco reforms drive mkts

Indian markets continued their dream run with Sensex and Nifty today galloping to new peaks as the onset of the southwest monsoon and hopes of hike in natural gas prices attracted fresh funds from overseas investors betting big on a economic revival under the new government.
The market tempo was upbeat for the second day in a row, pushing up key indices to uncharted waters as the Sensex logged a new all-time intra-day high of 25,419.14 and settled for the day at a new closing high of 25,396.46, up 376.95 points or 1.51 per cent.
The Sensex surpassed its previous all-time high of 25,375.63 registered on May 16 and its previous record close of 25019.51 hit on June 5. On weekly basis, it has bounced back by a whopping 1,179.12 points or 4.89 per cent.

Similarly, the wide-based 50-issue CNX Nifty of the NSE also jumped 109.30 points, or 1.46 per cent, to end above 7,500-mark for the first time at 7,583.40. It also crossed its all-time intra-day high of 7,563.50 hit on May 16.
On global front, overnight decision of the European Central Bank to cut its benchmark interest rates to unprecedented lows to pump money into the sluggish euro zone economy. This also boosted domestic market sentiments.
"Markets rose sharply for the week, reaching new all-time highs. Announcement of stimulus by ECB and continued optimism on economic reforms in India led to big gains. Expectations of resolution to the gas pricing issue helped stocks like RIL and ONGC register gains. We see the monsoon progress and the budget to be the two important triggers," said Dipen Shah, Head- Private Client Group Research, Kotak Securities.

Foreign Institutional Investors (FIIs), key drivers of the recent bull run, picked up shares worth Rs 1,368.97 crore yesterday, as per provisional data with stock exchanges.
Nine of the twelve of the sectoral indices ended in the green. Realty, oil&gas and banking shares led the surge.
There was broad-based buying witnessed in the markets. Market breadth remained positive as 2,144 stocks closed with gains while 959 ended lower. The BSE Small and midcap indices jumped about 1.6 per cent each.