Macro-data, foreign fund inflows lift equity markets to new high

Mumbai, April 3 (IANS) The key Indian indices closed at record high levels on Monday on the back of healthy macro-economic data, inflow of foreign funds, and healthy buying in capital goods and banking stocks.

The first trade session of the new financial year 2017-18 also saw a rally in index heavyweights like Reliance Industries and Larsen and Toubro (L&T).

The wider 51-scrip Nifty of the National Stock Exchange (NSE) rose by 64.10 points or 0.70 per cent to 9,237.85 points -- a new closing high. After opening at a record high of 9,220.60 points, it touched a fresh 52-week intra-day high of 9,245.35 points.

The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 29,737.73 points, closed at a record high level at 29,910.22 points -- up 289.72 points or 0.98 per cent from the previous close at 29,620.50 points.

The BSE Sensex touched a new 52-week intra-day high of 29,926.94 points. The BSE market breadth remained bullish throughout the session with 2,068 advances and 809 declines.

In terms of the broader markets, the mid-cap and small indices, too, touched new 52-week highs. The S&P BSE mid-cap index closed higher by 0.66 per cent and the small-cap index surged by 1.29 per cent.

"Markets zoomed higher on Monday to new life highs driven by a rally in index heavyweights Reliance Industries, L&T, among others," Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.

"Mid-cap index underperformed the Sensex, while the small-cap index outperformed. Major Asian markets have ended on a positive note. European indices like FTSE 100 and CAC 40, however, traded lower."

Anand James, Chief Market Strategist, Geojit Financial Services, said: "PMI (Purchasing Managers' Index) data showing expansion in manufacturing activity has boosted expectations towards Q4 numbers giving more legs to the ongoing rally. Hopes of measures NPA (non-performing assets) resolution also kept banking stocks maintain its uppish streak."

The macro-economic data revealed that the Nikkei India Manufacturing PMI -- which measures India's manufacturing activity -- rose to 52.5 in March from 50.7 in February.

"For the fifth session in a row, the NSE Nifty has closed at record high levels thanks to a strong rally in one of the top stocks - Reliance Industries. Reliance has been gaining ground after the company declared much higher levels of conversion of its free clients to paid ones," Vijay Singhania, founder and Director of brokerage firm Trade Smart Online, said.

"L&T, on the other hand, benefited from a sharp increase in target price by one of its brokers."

However, the Indian rupee weakened by 18 paise to 65.03 against a US dollar from its previous close of 64.85 to a greenback.

In terms of investments, provisional data with the exchanges showed that the foreign institutional investors (FIIs) purchased scrip worth Rs 534.45 crore, while the domestic institutional investors (DIIs) divested scrip worth Rs 33.29 crore.

Sector-wise, banking stocks witnessed good buying activity after the top public sector lender State Bank of India (SBI) began operations on Monday with 500 million customers post its merger with five associate banks and the Bharatiya Mahila Bank.

The lending major's scrip at the BSE gained by 0.19 per cent to Rs 293.15 per equity share from its previous close of Rs 292.60 per share.

Besides, the S&P BSE capital goods index augmented by 570.37 points, followed by the banking index, which surged by 163.67 points, and the healthcare index, which rose by 160.59 points.

On the other hand, the IT index fell by 89.52 points, the Teck (technology, media and entertainment) index, which slipped by 53.68 points, and the telecom index was lower by 10.70 points.

Major Sensex gainers on Monday were: L&T, up 5.26 per cent at Rs 1,660.65; Dr. Reddy's Lab, up 4.32 per cent at Rs 2,746.20; Reliance Industries, up 3.94 per cent at Rs 1,371.20; ICICI Bank, up 3.48 per cent at Rs 286.75; and Gail, up 2.28 per cent at Rs 385.05.

Major Sensex losers were: Bharti Airtel, down 2.37 per cent at Rs 341.65; Wipro, down 1.60 per cent at Rs 507.10; Infosys, down 1.11 per cent at Rs 1,009.45; Bajaj Auto, down 0.87 per cent at Rs 2,783.05; and Tata Consultancy Services (TCS), down 0.73 per cent at Rs 2,413.30.

The Indian equity markets will remain closed on Tuesday on account of Ram Navami.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)