Sensex, Nifty Close At New Peaks On Earnings Cheer

Mumbai: Markets continued their record-setting streak for yet another session on Thursday with both the Sensex and Nifty ending at lifetime highs amid optimism over earnings and short-covering on derivatives expiry. The BSE Sensex gained 104.63 points to end at 33,147.13, while the broader Nifty spurted 48.45 points to finish at 10,343.80. Both the key indices had climbed to lifetime highs yesterday as well. Covering up of pending short positions by speculators on the expiry of the October derivatives contracts helped the index recover in the last hour of trade, brokers said.

The experts attribute the sustained rise in markets to government's decision to recapitalize the public sector banks.

"This large recapitalisation plan would be positive for the credit quality of these bonds and serve to reinforce the expectation of strong government support for these banks. It is interesting to note that a major part of the recapitalisation is being proposed through the issuance of recapitalisation bonds and it may not directly lead to an increase in fiscal deficit," SMERA Ratings CEO Sankar Chakraborti said. 

The 30-share index opened gap down at 33,025.17 against Wednesday's record close of 33,042.50 and quickly raced to a high of 33,074.91.

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