The Indian equity benchmarks rose for third session in a row and closed at record highs on Monday led by gains in Tata Motors, HDFC Bank, ICICI Bank, ITC, Kotak Mahindra Bank, HDFC, Maruti Suzuki and State Bank of India. The Sensex rose as much as 417 points to hit record high of 60,476.13 and Nifty 50 index moved above its important psychological level of 18,000 for the first time to hit record high of 18,041.95.
The Sensex advanced 77 points to close at record high of 60,136 and Nifty 50 index rose 51 points to close at an all-time high of 17,946.
"Nifty Index crossing 18,000 levels marks the continuation of the bull phase in the Indian markets. There are strong positive sentiments on the domestic front, even though the global cues are pointing towards increasing risks. Central banks across the world are expected to unwind their balance sheet expansion sooner than later to counter increasing inflation. In addition, this earnings season in India is going to be extremely critical, given that price to equity of Nifty is above 27 times and earnings need to keep pace with the same. Overall, we are cautious at this point of time and waiting for a definite conclusion on the tussle between global cues and domestic developments," said Mohit Ralhan, managing partner & chief investment officer at TIW PE.
Buying was visible across the board as all the 15 sector gauges, barring the index of information technology shares, compiled by the National Stock Exchange ended higher. Nifty Auto index was the top sectoral gainer, up nearly 3 per cent. Nifty Bank, Financial Services, Media, Metal and Realty sector gauges also rose between 1.3-2.6 per cent.
Mid- and small-cap shares also witnessed buying interest as Nifty Midcap 100 index rose 0.6 per cent and Nifty Smallcap 100 index advanced 1.13 per cent.
Tata Motors was top Nifty gainer, the stock rose 9 per cent to close at fresh 52-week high of Rs 417.80 after the company said that underlying demand for Jaguar Land Rover products remains strong with order books at record levels. The company, however, warned that retail sales of Jaguar Land Rover for three-month ended September 2021 was constrained by the impact of the global semiconductor shortage.
Coal India added 4.35 per cent amid reports of shortage of coal in the country. Maruti Suzuki, Power Grid, Grasim Industries, Hindalco, ONGC, NTPC, ITC, State Bank of India, Kotak Mahindra Bank and HDFC Bank also rose between 2-3.4 per cent.
On the flipside, TCS fell 6 per cent to close at Rs 3,687 on fears that large deals that drove most of its growth in the past year were drying up. Tech Mahindra, Infosys, HCL Technologies, Britannia Industries, Wipro, HDFC, Reliance Industries and Bharti Airtel were among the losers.
The overall market breadth was positive as 1,952 shares ended higher while 1,481 closed lower on the BSE.