Reliance Industries Pushes Markets To Record High, Sensex Ends Near 30,000

Indian equity indices closed at record high for the second consecutive day on Wednesday as heavyweights like Reliance Industries, Maruti Suzuki rallied. The Sensex ended just 26 points away from the crucial 30,000 mark after briefly crossing it in the opening deals while the Nifty ended yet at another record high of 9,265.3 after surging to a fresh all-time high of 9,273.90 during the day. Except IT and FMCG shares most other indices ended in green today. The small and midcap shares also registered 0.46 and 1.12 per cent gains.

Here are 10 key highlights:

1) The Sensex has gained over 11 per cent in the March quarter, buoyed by strong foreign flows into Indian markets.

2) Foreign inflows surged after the BJP, which rules at the Centre, swept crucial assembly elections in Uttar Pradesh, bolstering hopes for additional economic reforms just as the government gears up to unveil a national goods and services tax later this year.

3) Overseas investors bought a net $8.84 billion worth of Indian shares and bonds during March, the biggest monthly total since at least 2002.

4) Investors have also been encouraged by signs that the economy may not have been hit as hard by the government's surprise action to remove high-value bank notes from circulation last year.

5) Meanwhile, activity in India's manufacturing sector expanded at the fastest pace in five months in March as output and new orders accelerated, a private survey showed on Monday.

6) "It's a combination of FII (foreign institutional investor) liquidity, which is back, and the general atmosphere is as positive as can be for the market," said Jayant Manglik, president of retail distribution at Religare Securities.

7) Analysts say that the March quarter earnings season starting from next week will determine the near term trajectory of Indian markets.

8) The rupee had closed out the March quarter with its best performance in over 40 years against the dollar, rising 4.7 per cent during the 3-month period. The currency edged higher to 64.91 against the dollar today; it had closed on Monday at 65.02. Markets were closed on Tuesday.

9) Midcap and smallcap stocks continued to outperform with the indices on the BSE rising 0.46 per cent and 1.12 per cent.

10) Among the Nifty50 stocks, Adani Ports was the top gainer up 4.69 per cent followed by Maruti Suzuki and Reliance Industries, which rallied 4.45 per cent and 2.93 per cent respectively. Zee Entertainment, Hindalco, Bharti infratel were the other major gainers in the Nifty rising between 2-3 per cent.

(With agency inputs)