The Indian equity benchmarks surged to fresh record highs on Wednesday. The Sensex rallied as much as 440 points to trade above 54,000-mark for the first time and Nifty 50 index moved above its important psychological level of 16,250 for the first time. The markets have been rallying on the back of hopes of faster pace of economic recovery as various macro-economic indicators pointed towards demand revival in the economy. Meanwhile, hopes of dovish monetary policy from the RBI's monetary policy committee to spur the economic growth in the country also boosted positive sentiment on Dalal Sreet, analysts said.
As of 9:31 am, the Sensex was up 431 points at 54,255 and Nifty 50 index climbed 121 points to 16,251.
"Pace of vaccination is giving hopes that the economy can open up faster than anticipated. Tax efficiency has improved drastically, fuel sales have been good in July despite high prices and corporate results have also been surprising the market which is helping the markets scale new highs," AK Prabhakar, head of research at IDBI Capital told NDTV.
HDFC, ICICI Bank, HDFC Bank, Reliance Industries, Infosys and Kotak Mahindra Bank were among the top movers in the Sensex.
Seven of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Financial Services index's 1.4 per cent gain. Nifty Bank, Private Bank and Metal indexes were also trading with a gain of over 1 per cent.
On the other hand, select FMCG, IT and Auto sector hares were showing weakness.
Broader markets were underperforming their larger peers as Nifty Midcap 100 index rose 0.11 per cent and Nifty Smallcap 100 index advanced 0.53 per cent.
HDFC was top Nifty gainer, the stock rose 3.14 per cent to Rs 2,635. Shree Cements, ICICI Bank, Tata Steel, Kotak Mahindra Bank, Coal India, Dr Reddy's Labs, HDFC Bank, Reliance Industries, JSW Steel and IndusInd Bank were also among the gainers.
On the flipside, Bharti Airtel was top Nifty loser, the stock fell 1.3 per cent to Rs 572 as traders booked profits after the company reported net profit of Rs 284 crore compared to a net loss of Rs 15,933 crore in the corresponding quarter last year.
Tata Consumer Products, ONGC, Tech Mahindra, UltraTech Cement, Grasim Industries, Mahindra & Mahindra, Sun Pharma, Titan, Nestle India, Britannia Industries and Bharat Petroleum were also among the losers.
The overall market breadth was extremely positive as 1,809 shares were advancing while 931 were declining on the BSE.