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The S&P BSE Sensex and Nifty50 ended at new life-time highs led by IT stocks such as Infosys Ltd and financials led by Housing Development Finance Corporation Ltd.
The 30-share BSE index Sensex jumped 70.42 points or 0.2 per cent to end at 34,503.49, while the 50-share NSE index Nifty closed at 10,651.20, up 19 points or 0.18 per cent. The Sensex, after a cautious start, gathered momentum and rallied to 34,558.88, before ending at 34,503.49. It broke its previous closing high of 34,443.19 hit on January 9.
The Nifty touched an all-time high of 10,664.60 on a flurry of buying. It finally settled 19 points, or 0.18 per cent higher at 10,651.20, surpassing its previous closing record of 10,637 hit on January 9
Among BSE sectoral indices, realty index gained the most by 2.00 per cent, followed by IT 0.84 per cent, TECk 0.73 per cent and FMCG 0.39 per cent. On the other hand, oil & gas index fell 0.29 per cent, consumer durables 0.26 per cent, infrastructure 0.19 per cent and capital goods 0.16 per cent.
Top five Sensex gainers were Infosys (+2.28%), Bharti Airtel (+1.66%), Kotak Bank (+1.61%), HDFC (+0.99%) and Asian Paints (+0.97%), while the major losers were IndusInd Bank (-2.08%), Wipro (-1.53%), ICICI Bank (-0.82%), Axis Bank (-0.76%) and Hero MotoCorp (-0.7%).
Earnings season eyed
“Investors are looking for indications from earnings due today. The commentary on the quarter is crucial; if it does not meet their expectations, the negatives will start to take on more weight,” said Sunil Sharma, chief investment officer at Sanctum Wealth Management.
Rising inflation and interest rates remain a concern, he added.
The country's retail inflation rate likely rose to a 17-month high in December, a Reuters poll showed, suggesting increasing pressure on the central bank to tighten monetary policy.
“There is nervousness around crude oil as well. Fundamentally, investors are looking at the impact crude (prices) will have on the margins,” Sharma said.
Crude oil
Crude oil inched away from three-year highs on signs that a 13-per cent rally since early December may have run its course, although a surprise drop in US production and lower crude inventories offered prices some support.
Reliance Industries fell 0.2 per cent and Bharat Petroleum Corp Ltd shed 0.8 per cent. Lender ICICI Bank Ltd fell 1 per cent, while Axis Bank Ltd shed 1.2 per cent. However, IT stocks advanced, with Infosys rising 1 per cent. The company is due to report quarterly results on Friday.
Asian shares
The New Year rally in Asian shares ran out of steam on Thursday as concerns about the US administration's protectionist stance hit Wall Street while US bonds were dented by speculation China may curtail buying. MSCI's broadest index of Asia–Pacific shares outside Japan shed 0.1 per cent in early trade, slipping further from Tuesday's 10-year peak. Japan's Nikkei lost 0.6 per cent.
US shares snapped their New Year rally on Wednesday while the Canadian dollar and the Mexican peso fell after a Reuters report said Canada increasingly believes that US President Donald Trump will soon announce his intention to withdraw from the North American Free Trade Agreement treaty.
The Dow Jones Industrial Average fell 16.67 points, or 0.07 per cent, to 25,369.13, the S&P 500 lost 3.06 points, or 0.11 per cent, to 2,748.23 and the Nasdaq Composite dropped 10.01 points, or 0.14 per cent, to 7,153.57.
(With inputs from Reuters)
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