Sensex breaches 28,000-mark, bank stocks up

Mumbai, Nov 5 (IANS) A benchmark index of Indian equities markets on Monday touched a record high of 28,010 points in the intra-trade session on Wednesday, surpassing the previous high of 27,969.82 points hit on Monday.

Healthy buying was observed in bank, healthcare and capital goods stocks, while selling pressure was seen in the metal, oil and gas and power sectors.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,907.19 points, closed the trade provisionally at 27,910.42 points, up 55.50 points or 0.20 percent from the previous day’s close at 27,860.38 points.

The Sensex touched a high of 28,010.39 points and a low of 27,857.65 points in the intra-trade. The stock market rally since the BJP victory in the general elections has increased the the 30-stock sensitive index, Sensex by around to 30 percent year-on-year.

The Sensex had crossed the 25,000-mark on May 16. It then breached the 26,000-mark on August 14 after a slew of government reforms. On Sep 2, the markets touched the 27,000-mark in a 151 points rally.

The Foreign Portfolio Investors (FPIs) have became net buyers in the Indian equities market, following the positive global trend and a slew of domestic reforms.

The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.

The FPIs went on a buying spree, stocking-up equity worth Rs.61,242 crore till September in the current fiscal.

For the Wednesday’s trade the FPIs massively bought stocks worth Rs.1,458.78 crore or $237.55 million, according to data with the National Securities Depository Limited (NSDL).

According to market analysts further reforms by the government will lead the bursar into a bullish spell over the medium term.

“Markets consolidated post the recent rally in the markets, which has come about on the back of renewed optimism on fiscal reforms, sharp correction in crude prices, improved growth in US, liquidity easing by Japan and diminished possibilities of an immediate increase in US interest rates," said Dipen Shah, head – private client group research, Kotak Securities.

"In the near term, focus will consistently remain on further reform initiatives. Winter session of the parliament will be closely watched for GST, land reforms."

ZyFin Advisors’ chief executive Devendra Nevgi told IANS that with all the triggers on which the market can react being positive, the earnings need to catch up for the markets to remain on the high growth trajectory.

"There are healthy global cues like reduction in crude prices, Japanese central bank’s decision to print in more money and the pick-up in global sentiments," Nevgi said.

The Indian markets were closed on Tuesday on account of Muharram and will be shut again on Nov 6 (Thursday) on Guru Nanak Jayanti (birth anniversary). 

The S&P BSE bank index gained 276.92 points, healthcare index moved up by 145.57 points and capital goods index got augmented by 90.71 points.

However, metal index dropped by 358.62 points, followed by oil and gas index which was lower by 73.05 points and power index which lost 19.75 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed up 14.15 points or 0.17 percent at 8,338.30 points.

The major Sensex gainers were Axis Bank, up 2.93 percent at Rs.457.70; State Bank of India (SBI), up 2.24 percent at Rs.2,782.25; DrReddy, up 2.24 percent at Rs.3,252, Sun Pharma, up 2.10 percent at Rs.869.65 and ICICI Bank, up 1.84 percent at Rs.1,672.30.

Major Sensex losers were Hindalco Inds, down 4.10 percent at Rs.156.80, Sesa Sterlite, down 3.79 percent at Rs.251.40, Coal India, down 3.15 percent at Rs.348.95, Bharti Airtel, down 2.70 percent at Rs.385.30 and Tata Steel, down 2.29 percent at Rs.477.95.

Among the Asian markets, China’s Shanghai Composite Index was lower by 0.42 percent, Hong Kong’s Hang Seng lost by 0.63 percent.

In Europe, London’s FTSE 100 was up 0.87 percent, France’s CAC 40 was 1.19 percent higher and Germany’s DAX Index increased by 1.21 percent.