 "Metals, auto stocks drive indices to fresh highs; Sensex jumps 666 pts")
Benchmark Sensex rallied 666 points to close at a fresh high on Thursday fuelled by a rally in auto and banking stocks, amid gains in the global markets following China’s stimulus blitz.
The BSE Sensex jumped 0.78 per cent to settle at 85,836.12 on the monthly derivatives expiry day.
The Nifty 50 index closed at 26,216, up 212 points or 0.8 per cent.
The total market capitalisation of BSE listed stocks rose by Rs 1.9 trillion, to end the session at Rs 477 trillion. The Nifty finished with gains on all sessions, barring six, this month.
The latest gains were underpinned by a rally in auto majors after reports suggested Karnataka would offer incentives to clean mobility, including a steep tax cut for hybrid cars.
Most of Sensex's gains were contributed by Mahindra & Mahindra, which rose 2.9 per cent, Maruti, which gained 4.8 per cent, and Tata Motors that revved by 3.08 per cent.
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Foreign portfolio investors were net buyers worth Rs 630 crore, and domestic institutions bought shares worth Rs 2,405 crore.
Karnataka aims to drop road tax and registration charges for hybrid cars, which cost less than Rs 25 lakh, to 13 per cent from current 18 per cent, news reports said.
The move will make it the second state after Uttar Pradesh to offer tax breaks for hybrid cars.
The promise of China's top leaders to ramp up efforts to spur growth fueled a wave of buying across Asia and Europe.
Reports after Chinese President Xi Jinping's meeting with the 24-man Politburo said the top leaders have pledged to support fiscal spending and make efforts to stabilise its property sector enthused investors.
On Wednesday, the Chinese authorities said they would give one-time cash handouts to residents facing economic difficulties and hardship and promised more benefits for the unemployed populace.
Metal stocks also shone, with the BSE Metal index rising over 2 per cent after reports about China's efforts to revive its economy.
Indian equity markets have been on an upward trajectory after the US Fed's rate cuts last week that ushered in hopes of easing monetary policy measures across the globe.
"The Nifty continued its impressive run and closed at a record high for the fifth consecutive session, which is indicative of a strong market strength. We expect the bullish momentum to continue supported by strong action in frontline stock," said Siddhartha Khemka, head of retail research of Motilal Oswal Financial Services.
The market breadth was mixed, with 2,343 stocks declining and 1,643 advancing.
Analysts said the message over the last 10 days, from monetary and fiscal policymakers across the globe, has been clear.
The measures to revive economic growth will power the upward trajectory of equities over the short and medium-term.
"Supportive global cues and rotational buying across sectors are lifting the markets. Current indicators suggest that this upward trend will continue, with the Nifty likely approaching 26,500. While all sectors are participating in the movement, we continue to favour rate-sensitive sectors such as banking, auto, realty, and financials, and recommend selectively picking stocks from the metal and energy sectors as well," said Ajit Mishra – SVP of Research, Religare Broking.