Indices at new highs on good macro data
NEW DELHI : The Sensex scaled a record high of 67771.05 on Thursday, breaching its earlier peak of 67619.17 seen in July as markets continued their northward journey despite volatility on F&O expiry day. The Nifty too scaled a fresh high of 20167.65 before closing at a record high of 20103.10 up 0.16%. Sensex ended the day at 67519 with slight gains of 0.08% amidst weak global cues.
Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services Ltd attributed gains to favourable wholesale price index (WPI) data. “Overall, we expect the market to maintain its positive trend on the back of strong domestic macroeconomic data," said Khemka. Domestic data remains favourable and is supporting markets despite weak global cues.
After strong industrial production growth numbers and lower consumer price index (CPI) inflation, encouraging trend continued with the WPI inflation numbers on Thursday. WPI inflation stayed negative for fifth month, at 0.52% in August. Indian market has been the best performing market in September, outperforming most large markets, with Sensex and Nifty gaining 4.15% and 4.37%, respectively.
Gains have been led by public sector banks, though private banks and other financial companies have seen reasonable gains, too. The other indices that have contributed to gains are Nifty IT, Nifty Metals, Nifty Realty, Nifty Infra, which are up 5-6% in September. Remaining indices too gained 1.7-4.6% in September.
On Thursday, the gains for the markets were led by PSU banks, metals, realty, oil and gas, and auto stocks. The broader market outperformed with Nifty Mid-cap 100 and Small-cap 100 index up 1%. The rotational buying across sectors is helping the index to inch gradually higher amid mixed global
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