Thursday, May 25, 2017

SENSEX @ ANOTHER RECORD

Key barometer Sensex today trumped all closing records by hitting 30,750 with a jump of 448 points -- its biggest single-day gain in over two months -- after the US Fed signalled that it will wait for more data for a rate hike. The 50-share Nifty again got control of the key 9,500- level. The minutes from the US central bank's May 2-3 policy meeting, according to traders, was in large part responsible for the sudden spike in enthusiasm. This prompted investors to cover their short bets as Thursday was also the last day for May futures and options contracts. A spell of intense buying interest in late afternoon trade propelled the markets higher as participants carried forward their positions to the June series of derivatives. Positive earnings by some companies perked up sentiment.
The rally in domestic equities was largely in line with the upmove at other Asian markets, mirroring overnight gains on the Wall Street, as minutes from the Federal Reserve's latest policy meeting favoured a cautious approach to raise borrowing costs.
- The 30-share Sensex vaulted to an all-time high of 30,793.43 (intra-day) to close at a new peak of 30,750.03, up 448.39 points, or 1.48 per cent, leaving behind its previous record closing of 30,658.77 reached on May 17.
- Today's rally was the biggest since March 14 when it surged 496.40 points.
- The 50-share NSE Nifty again hit off the key 9,500 to scale the session's high of 9,523.30 before ending at 9,509.75, up by 149.20 points, or 1.59 per cent.
- The rupee showed strength for the second day against the dollar as it ended at 64.62 today, which came as a shot in the arm.
- Larsen and Toubro emerged as the top gainer, by surging 4.97 per cent, followed by ICICI Bank, HDFC Bank and Infosys.Voltas shot up by another 6.25 per cent to close at a fresh one-year high after its solid quarterly earnings. Drug firm Lupin plunged 7.31 per cent after the company yesterday reported a plunge in consolidated net profit.
- The BSE capital goods rallied the most, up 3.52 per cent. Banking spiked 2.82 per cent, IT 2.32 per cent and realty 2.01 per cent.
- Small-cap and mid-cap indices climbed 2.01 per cent and 1.35 per cent, respectively.
European shares traded higher too.

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