Index touches a new intra-day high of 26,123.55 before ending higher by 138 pts as investors lap up stocks amid optimism over reforms and incentives for various sectors to revive economic growth
Mumbai : Extending their pre-Budget rally, shares jumped with the benchmark index Sensex crossing 26,000-mark for first time in its history as investors lapped up stocks amid optimism over reforms and incentives for various sectors to revive economic growth.
Persistent capital inflows were also another factor behind the spurt in share values, traders said.
The 30-share BSE index touched a new intra-day record high of 26,123.55 before ending 138.02 points, or 0.53 per cent higher at 26,100.08.
The 50-share Nifty scaled a new all-time high of 7,787.15, up 35.55 points, or 0.46 per cent, over its last close after hitting 7,792 in intra-day trade on a day when Railway-linked stocks hogged the limelight.
Technology stocks, riding on upbeat forecast ahead of earnings season that will be kicked off with Infosys numbers on July 11, spearheaded the surge even as healthcare, FMCG, auto and infra shares joined the rally.
Shares of Infosys rose by 3.23 per cent to Rs 3,343.75 and TCS was up 3.06 per cent to Rs 2,483.50 on the BSE. Hexaware Technologies Ltd went up by 2.06 per cent, Wipro gained 1.86 per cent and HCL Tech jumped 1.85 per cent.
However, heavy unwinding was witnessed in the banking sector with both public and private lenders slipping and restricting further market gains.
Investors are eagerly waiting for the Narendra Modi Government’s maiden Budget, to be presented on July 10, which they hope will unveil a roadmap to revive growth in the backdrop of stubbornly high inflation and a weak monsoon.
“Expectations are government will use the Union Budget to create an environment, which is conducive for growth. The idea will be to drive GDP growth to over 6 per cent in FY16, and further accelerate it to 7-8 per cent in ensuing years,” said Arvind Sethi, MD & CEO, Tata Asset Management.
Shares of rail-related stocks were in focus on eve of Railway Budget. Stocks like Kernex Mico, Kalindee Rail, Titagarh Wagon and Texmaco rose between 5 and 13 per cent. “Some measures which can be expected in this railway budget are foreign direct investment (FDI) in railways, increasing the number of trains, increasing the speed of the trains by cleaning up surrounding areas of railway tracks, introduction of bullet trains,” said Yogesh Nagaonkar, VP- Institutional Equities, Bonanza Portfolio.
IDFC was among the most actively traded shares and shot up 6.34 per cent after Morgan Stanley upgraded the stock to overweight.
