- IT stocks, which were laggards in 2017, have joined the rally
- Midcap and smallcap stocks also saw strong buying
- Infosys, Tata Steel, Vedanta were among the top gainers
10 Things To Know About The Record Run Of Sensex, Nifty:
The gains were broad-based with all the sectoral indices on the BSE trading in the green. Metal, oil & gas, banking and energy stocks led the rally.
Top Nifty50 gainers included Vedanta, GAIL, SBI, Hindalco, Tata Steel, Cipla and ONGC, rising between 3 per cent and 5 per cent.
In its latest update, the IMF projects India to grow at 7.4 per cent in 2018, making it the fastest growing country among emerging economies following last year's slowdown due to demonetisation and the implementation of GST. The IMF has projected a 7.8 per cent growth rate for India in 2019.
In the near term, the Budget, global markets and earnings of India Inc will determine the trend of markets, say analysts.
Karthikraj Lakshmanan, senior fund manager at BNP Paribas Mutual Fund, says the market will be taking cues from earnings of key companies along with the upcoming Budget.
Rising crude oil price, inflation and earnings of Inc remain key risk factors for market, they add.
IT stocks, which underperformed broader markets in 2017, have joined the rally, providing momentum to the markets. Optimism about global growth and tech spending and third-quarter earnings of some IT companies have lifted the sentiment in IT stocks.
"The bull run in the equity markets continues in India. The turnaround in the Industrial/economic growth in October 2017 along with big policy announcements related to Bank recap and Bharatmala led to a good upmove in October 2017," said Deepak Jasani, head-retail research, HDFC Securities. "In January 2018, we are witnessing FIIs returning to the buy side in a big way after a break. The forthcoming Budget could aid in determining the future direction of markets from here on."
Asian stocks advanced on Tuesday after US senators struck a deal to end the government shutdown, sending Wall Street's main indexes to record highs.
Globally, market participants await the outcome of the European Central Bank's meeting on Thursday for possible clues to future shifts in the bank's monetary policy.