The Indian equity benchmarks surged to record highs on Wednesday led by gains in Bharti Airtel, Infosys, Tata Consultancy Services, State Bank of India, NTPC and HCL Technologies. The Sensex rose as much as 530 points to hit record high of 58,777.06 and Nifty 50 index moved above important psychological level of 17,500 for the first time.
The Sensex advanced 476 points to end at 58,723.20 and Nifty 50 index climbed 139 points to close at 17519.45.
"Nifty continues to trade with a positive bias for the short as well and medium term. We expect the index to conquer 18,000 and above in the medium term. Last matured support for the index is seen at 17,080 above which we remain positive. Options concentration is seen at 17,000 put and 17,500 call – this is indicative of some resistance at 17,500-17,600 levels. Value is seen in Auto and Mid-cap Banking stocks; expect outperformance in the midcap space to continue," said Sahaj Agrawal, head of research derivatives at Kotak Securities.
Telecom shares witnessed strong buying interest after the government announced relief measures for the telecom sector. The Union Cabinet on Wednesday cleared a relief package for the stressed telecom sector which entails relaxation to telecom companies on payment of their long outstanding dues, including a four-year moratorium on spectrum instalment which is due in April 2022. The measure of telecom shares on the BSE jumped over 3 per cent with Bharti Airtel and Vodafone Idea among the top gainers.
Buying was visible across sectors as all the 19 sector gauges compiled by the BSE ended higher. IT, Industrials, Auto, Consumer Durables, Power, Utilities, Metal And Oil & Gas indices also rose between 1-2 per cent.
Mid- and small-cap shares also witnessed buying interest as Nifty Midcap 100 index rose 1 per cent and Nifty Smallcap 100 index advanced 0.7 per cent.
NTPC was top Nifty gainer, the stock rose 7.5 per cent to close at Rs 125. Bharti Airtel, Coal India, ONGC, Titan, HCL Technologies, State Bank of India, IndusInd Bank, Power Grid and Tata Motors also rose between 1.76-4.8 per cent.
On the flipside, Tata Consumer Products, Nestle, Grasim, Bharat Petroleum, Asian Paints, UltraTech Cement, Axis Bank and Britannia Industries were among the losers.
The overall market breadth was positive as 2,055 shares ended higher while 1,246 closed lower on the BSE.