Indian markets hit a new high today after Sensex rose 286 points to 40,337, overtaking 4th June highs of 40,312. Positive global cues after a rate cute by the US Federal Reserve, a buzz of more tax reforms and strategic stake sale in many PSUs lifted the sentiment. The Sensex is now up in 12 out of 15 previous sessions. The broader Nifty also today crossed the 11,900 marks and it now remains around 200 points away from its all-time high of 12,103, also hit in June this year. Today is also the derivative settlement day. All derivatives will now have to be compulsorily settled by delivery.
Here are a few points to remember:
- Gains were broad-based with all the sectoral indices on the NSE trading in the green. PSU banking stocks were in the spotlight with SBI surging over 4%.
- The Nifty PSU banking index was up 3.4%, with Central Bank surging 13%, Allahabad Bank 9%, Syndicate Bank 8%, PNB 4% and OBC 3.5%.
- Apart from SBI, other top gainers in the Sensex pack included Infosys (4%), Tata Motors (3.5%) and Yes Bank (2%). Other top gainers included TCS, Bajaj Finance, Bajaj Auto and Kotak Mahindra Bank.
- Better-than-expected earnings from some market heavyweights, corporate tax cut and buzz of strategic disinvestment are catalysts of the current leg of the rally, says Sanjiv Bhasin, director of IIFL Securities. In the near term, 12,000-12,400 could be on the cards, he added.
- The global backdrop remains positive with Wall Street rising to new highs overnight.
- The US Federal Reserve on Wednesday cut interest rates for the third time this year but signalled a pause unless the economy takes a turn for the worse.