Sensex Ends at Record-High Above 29,000

The record-setting rally that started with a surprise rate cut by the Reserve Bank of India last week entered its sixth trading session on Thursday. The BSE Sensex ended above 29,000, notching up its third straight record closing, while the broader Nifty also closed at a record high of 8,761.

Hopes that a low interest rate regime will kick-start the domestic investment cycle and buying of shares by foreign investors are the two big reasons driving markets, traders say.

The 1,000-point rally in the Sensex, from 28,000 to 29,000, took just 2-1/2 months. The Sensex had hit 28,000 on November 5, 2014.

Foreign investors bought equity shares worth Rs 2065.49 crore on Wednesday extending their buying streak to five consecutive sessions. FIIs have now bought equities worth Rs 6,500 crore or over $1 billion in just five days.

"Positions are being build ahead of the Budget. Overseas investors have put a lot of money in the last couple of days," said Deven Choksey, managing director of KR Choksey Securities.

"We remain bullish and valuations are still comfortable. I expect Nifty to trade between 8,400 and 9,000 for the time being," he said.

From the Nifty basket Sun Pharma was the top gainer. The stock advanced 3.6 per cent to close at Rs 918. Axis Bank, DLF, Tata Motors, IDFC, UltraTech Cement, ONGC and Zee Entertainment were also among the prominent gainers, closing higher by 1.7-3.6 per cent each.

On the other hand, index heavyweight Reliance Industries was the top loser from the Nifty pack. The stock slipped 2.5 per cent to settle at Rs 884. According to Reuters, RIL fell on reports that the government has toughened its stand in a $1 billion dispute over the Panna Mukta and Tapti oil and gas fields.

NTPC, Punjab National Bank, Tech Mahindra, Hero MotoCorp and NMDC also ended weaker by 1-2 per cent each.

The broader markets ended on a listless note. The BSE mid-cap index ended marginally higher at 10,710 and the small-cap index advanced a mere 0.2 per cent to shut shop at 11,449.

Most of the sectoral indices, barring BSE Oil & Gas and Consumer Durables, closed in the green.

The overall breadth was marginally positive as 1.576 stocks advanced while 1,345 declined.

The Sensex closed higher by 136 points or 0.4 per cent at 29,025 and the Nifty jumped 38 points to end at 8,768.

(With inputs from Reuters)