Sensex Ends Above 28,000 For First Time, Up 98 Points

BSE Sensex and Nifty rose to record highs today, amid buying in rate-sensitive stocks ahead of the inflation data later in the day.

The Sensex ended 98 points higher to close above 28,000 for first time. During today's session, Sensex hit a new high of 28,126.48.

Nifty also hit the 8400 levels for the first time. It ended at a new-closing high of 8,383, up 20 points.

Traders are eyeing industrial production and inflation data to be released after market hours today. According to estimates, IIP rose a modest 0.8 per cent in September while consumer inflation in October fell to a record low of 5.67 per cent.

Indian markets have set a series of new highs since the third week of October, aided by strong foreign inflows and government's reform measures.

Foreign institutional investors have pumped in close to Rs 10,213 crore since October 20.

Bank stocks led the gains amid expectations that the RBI could cut rates earlier than expected. The Bank Nifty rose over 1 per cent. Axis Bank was the top Nifty gainer after rising over 3 per cent. Kotak Mahindra Bank, ICICI Bank and IndusInd Bank rose over 1 per cent.

Auto and real estate stocks also gained on expectations of rate cut. Bajaj Auto, Hero MotoCorp, DLF and Tata Motors rose between 1.5 per cent and 2.5 per cent.

Gautam Chhaochharia, head of India Research at UBS Securities, said buying from domestic investors is keeping the market supported. Equity mutual funds saw sixth straight month of inflows in October. This takes the six-month total to Rs 39,000 crore, the largest ever for a six-month period.