The Indian equity benchmarks scaled fresh record highs on Monday wherein the National Stock Exchange benchmark Nifty 50 index advanced as much as 167 points to hit record high of 16,872 and the Sensex jumped as much as 578 points to hit an all-time high of 56,701. The global equity markets jumped after US Federal Reserve Chairman Jerome Powell struck a more dovish tone than some investors expected in long-awaited speech on Friday.
As of 10:36 am, the Sensex was up 566 points at 56,690 and Nifty 50 index advanced 163 points to 16,868.
Japan’s Nikkei rose 0.9 per cent soon after the bell, and MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.32 per cent in early trading before Chinese markets had opened.
Investors had been waiting to see whether Powell, who was speaking at a symposium in Jackson Hole, Wyoming, would give a clear indication of his views on timing of the central bank’s tapering of asset purchases or hiking interest rates to start removing monetary stimulus.
However, in his prepared remarks, he offered no indication on cutting asset purchases beyond saying it could be “this year”, causing the S&P 500 and the Nasdaq to close last week at new record highs.
Back home, Reliance Industries, HDFC, Infosys, ICICI Bank, HDFC Bank, Larsen & Toubro and Tata Steel were among the top movers in the Sensex.
All the 19 sector gauges compiled by the BSE were trading higher led by the S&P BSE Metal index’s 1.75 per cent gain. Power, Realty, Consumer Durables, Capital Goods, Auto, Utilities, Industrials, Energy and Consumer Durables indices also rose over 1 per cent each.
Mid- and small-cap shares were also witnessing buying interest as S&P BSE MidCap index rose 0.94 points and S&P BSE SmallCap index advanced 0.85 per cent.
Hindalco was top Nifty gainer, the stock rose nearly 3 per cent to Rs 451. Tata Motors, Titan, Tata Steel, Bajaj Finance, Coal India, Mahindra & Mahindra, Larsen & Toubro, Bajaj Finserv, Maruti Suzuki and Reliance Industries also rose between 1.3-2.4 per cent.
On the flipside, Tech Mahindra and HCL Technologies were among the two losers in the Nifty 50 basket of shares.
The overall market breadth was extremely positive as 1,984 shares were advancing while 600 were declining on the BSE.