Sensex Hits Record High: Metal, Power Shares Gain

Mumbai, Jul 31 (PTI) Benchmark BSE Sensex rose by nearly 286 points to close at a record high while Nifty settled above 24,950 level on Wednesday, extending their winning run to the fourth day on gains in metal, power and select auto shares.

The 30-share BSE Sensex settled higher by 285.94 points or 0.35 per cent at 81,741.34 -- its all-time closing high -- with 20 of its components advancing and 10 ending lower. The index opened higher and jumped 372.64 points or 0.45 per cent to hit an intra-day high of 81,828.04.

The NSE Nifty rose 93.85 points or 0.38 per cent to close at an all-time high of 24,951.15. During the day, it surged 127.3 points or 0.51 per cent to hit a high of 24,969.35.

"The domestic market is attempting to cross above the psychological threshold of 25,000, as subdued Q1FY25 earnings and stretched valuations are curbing the challenge, while positive global trends and sector rotation are supporting the traction," Vinod Nair, Head of Research, Geojit Financial Services said.

Positive global sentiment driven by expectations of an easing interest rate cycle by the US Fed and the RBI in the medium term, owing to benign inflation, ignited the rally, he added.

As expected, the BoJ raised its interest rate while all eyes are on US Fed policy to be announced later in the evening.

Among the Sensex stocks, JSW Steel, Asian Paints, Maruti Suzuki India, NTPC, Adani Ports and Special Economic Zone, Bharti Airtel, ITC and Tech Mahindra were the major gainers.

Maruti Suzuki rose by 2.28 per cent as the auto major reported a 47 per cent jump in its net profit for the June quarter.

Reliance Industries, Tata Motors, Infosys, Mahindra and Mahindra, Bajaj Finance and Axis Bank were the laggards.

Prashanth Tapse, Senior VP (Research) at Mehta Equities, said Nifty ended comfortably in the green ahead of the FOMC outcome, closing just shy of the psychological 25,000 mark, signifying the bulls' continued strength on Dalal Street.

Investors now await key data releases and the FOMC outcome, with expectations set on Jerome Powell's commentary, Tapse said.

The US Federal Reserve (Fed) will announce its fifth interest rate decision for this year later in the night, after a two-day meeting of the Federal Open Market Committee (FOMC).

From this meeting, the Fed might offer hints about a possible rate cut in September.

"Indian shares began Wednesday on a positive note, buoyed by strong cues from other Asian markets amid expectations for additional stimulus measures from Beijing to support its ailing economy," Avdhut Bagkar Technical and Derivatives Analyst at StoxBox, said.

The market capitalisation of BSE-listed companies jumped to a life-time peak of Rs 462.38 lakh crore (USD 5.52 trillion) on Wednesday helped by a four-day rally in benchmark indices, making investors richer by Rs 5.45 lakh crore.

At the market close, the BSE smallcap gauge fell 0.14 per cent to in the broader market. However, BSE MidCap gauge jumped 0.86 per cent. During the day, both the indices hit their all-time high level.

Among the indices, Utilities surged 1.57 per cent, Power by 1.46 per cent, metal by 1.12 per cent, healthcare by 0.91 per cent and commodities by 0.74 per cent.

Energy, Telecommunication and Realty were the laggards.

In the broader market, Torrent Power shares zoomed nearly 17 per cent to finish at Rs 1,867.10 per piece on the BSE.

Also, Omaxe shares fell 5 per cent on the BSE after Sebi barred the real estate firm, its Chairman Rohtas Goel, MD Mohit Goel and three others from the securities market for two years for irregularities in the company's financial statements.

The European markets were trading in the green territory while Asian markets settled higher. Wall Street closed on a mixed note on Tuesday.

Global oil benchmark Brent crude rose 1.88 per cent to USD 80.51 a barrel.

Foreign institutional investors offloaded equities worth Rs 5,598.64 crore on Tuesday, according to exchange data.