Metal, Banking Stocks Push Sensex To Record Closing High

Indian shares scaled new peaks with the Sensex soaring 255 points or 0.82 per cent to end at a record close of 31,312 while the broader Nifty gained 70 points, or 0.72 per cent, to 9,658. Gains in the broader markets were led by buying in banking and metal stocks, with the BSE indices of both the sectors settling 1 per cent and 1.75  per cent higher respectively. The infra space also added to gains with the NSE subindex - NSE Infrastructure - settling 1 per cent higher. Tata Steel, Adani Ports, Hindalco Industries, Bosch, Vedanta and Axis Bank were among the top Nifty gainers - logging gains between 2 per cent and 3.5 per cent.

Other banks witnessing gains included SBI, ICICI Bank and HDFC Bank - settling up to 1.4 per cent higher. The Reserve Bank of India asked lenders to start bankruptcy process against 12 large loan defaulters, raising hopes that reduction of bad debt will start to quicken.

The central bank urged lenders to initiate bankruptcy proceedings against a dozen companies. The RBI said it had identified the 12 defaulters last week, but did not publicise their names.

"There is a general feeling that non-performing asset (NPA) levels will come down after the RBI order to resolve NPAs of the country," said RK Gupta, managing director at Taurus Asset Management.

Metal shares witnessed strong buying, with Tata Steel and Hindalco surging up to 3.50 per cent. Among other outperformers in the metal stocks were JSW Steel, which finished 2.25 per cent higher, Hindustan Zinc and Jindal Steel & Power logged gains of over 2 per cent on a closing basis.

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However, pharma and realty stocks came under some selling pressure.  Among the top losers on the 51-scrip index were Dr Reddy's, Sun Pharma and UltraTech. Infosys fell over 1 per cent to close at Rs 929.85 on the Nifty. Some other top losers on the National Stock Exchange benchmark were Eicher Motors, BPCL, Yes Bank and Tata Motors.

Among other market heavyweights, Reliance Industries and TCS gained nearly 1. 5 per cent.