Mumbai : Despite paring gains on the back of profit booking, the key Indian equity indices — the BSE Sensex and Nifty50 — managed to close at new highs on Thursday, led by healthy buying in banking stocks. According to market observers, positive Asian markets, coupled with inflow of foreign funds and upbeat quarterly corporate earnings, lifted the benchmark indices to record highs during the mid-afternoon trade session.
However, a sell-off during the last hour of trade pulled the benchmark indices lower from their highs to close with decent gains. The wider Nifty50 of the NSE closed above the vaunted 10,800-mark. The index edged higher by 28.45 points or 0.26 per cent to close at a new closing high of 10,817 points. The Nifty50 scaled a new level of 10,887.50 points during the intra-day trade. On the BSE, the barometer 30-scrip Sensitive Index (Sensex) closed at a new high of 35,260.29 points — up 178.47 points or 0.51 per cent — from its previous session’s close. The Sensex also touched a fresh intra-day high of 35,507.36 points. However, the BSE market breadth remained bearish as 2,301 stocks declined as compared to 663 advances. “Markets ended with modest gains on Thursday after a positive opening. The main indices initially witnessed a gap-up opening on the back of positive Asian markets. A sell-off from the highs curbed the gains for the day,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS. The “Nifty rose in the morning led by bank stocks on positive global cues and reports indicating that the government is mulling a proposal to hike foreign direct investment limit in the banking sector,” he added.
Media reports on Wednesday said the Narendra Modi government could soon permit 100 per cent FDI in private banks.
