Bulls set new records on one-way Dalal Street
equity gauges Friday towered above shrinking benchmarks in export-focused Asian economies to leap to a record, with higher-than-expected economic growth, softer energy prices and subdued US bond yields drawing both overseas and local funds to domestic risk assets.
Traders have factored in victories for the BJP in the latest round of state polls and their results, to be announced Sunday, may have a bearing on the short-term directional trend for stocks, although most analysts believe the indices will climb through December.
The Nifty gained 134.75 points, or 0.67%, to close at 20,267.90, after an intraday high of 20,291.55. The Sensex climbed 492.75 points, or 0.74%, to close at 67481.19.
Both had previously hit highs on September 15. «Falling inflation, leading to a peak in global interest rates, is the major underlying factor driving markets, in addition to decline in crude prices,» said Nischal Maheshwari, CEO-Institutional Equities, Centrum Broking.
Global Indices
«An interest rate cut is likely to take place in Q1 next year,» Maheshwari said.
With Friday's gains, India's equity benchmarks have run up for the fifth week in a row, coinciding with a reversal in the buying behaviour of overseas funds that were net sellers both in September and October.
Elsewhere in Asia, stocks retreated. Hong Kong declined 1.3%, South Korea ended 1.19% lower, and Indonesia fell 0.3%.
China and Taiwan ended flat over the previous trading session. The pan-Europe index Stoxx 600 was up 1% to its highest level since August.
In the US, Wall Street's main indices inched higher on Friday after Federal Reserve Chair Jerome Powell acknowledged progress in lowering inflation, encouraging expectations the central bank was done with its
