India Stock Market Hits New Highs: Nifty Breaches 21,000

Mumbai, Dec 8 (PTI) Equity benchmarks rebounded to close at their new lifetime highs with Nifty breaching 21,000 level for the first time on Friday after the Reserve Bank raised the growth forecast for the current fiscal and kept policy rates unchanged, triggering heavy buying in banking and other rate-sensitive stocks.

The 30-share BSE Sensex rose 303.91 points, or 0.44 per cent, to hit its new peak of 69,825.60. The index touched the highest intra-day level of 69,893.80.

The broader index Nifty breached the crucial 21,000 mark and hit the highest intra-day level of 21,006.10. The index settled higher by 68.25 points or 0.33 per cent at a fresh record high of 20,969.40.

As many as 19 shares of the 30-share gauge closed the day with gains, while 23 Nifty firms ended the session in green.

Among major Sensex movers, HCL Tech logged the biggest gain of 2.69 per cent, followed by JSW Steel (2.44 per cent) and Infosys (1.67 per cent. Other gainers included HDFC Bank, Titan, Axis Bank and ICICI Bank.

In contrast, ITC fell the most by 1.95 per cent, Mahindra & Mahindra by 1.48 per cent and Bajaj Finance by 1.18 per cent.

Meanwhile, the turnover of derivatives in BSE Sensex scaled a new milestone of Rs 200 lakh crore on the weekly expiry of Friday. The total turnover was Rs 213.9 lakh crore as 30.6 crore contracts were traded.

"The RBI took a balanced approach by raising the economic growth forecast and also expressing concern on food inflation, which may have an elevated trajectory in the short term. A drop in rabi sowing and dipping reservoir levels provides a perception that foodgrain prices can rise. The impact was visible on FMCG stocks, which underperformed today," said Vinod Nair, Head of Research at Geojit Financial Services.

Amol Athawale, Vice President - Technical Research, Kotak Securities, said: "For the index traders now, 20800-20700/69250-69000 would act as sacrosanct support zones while 21200-21300/70000-70300 could be the profit booking areas for the short-term traders. However, below 20700/69000 uptrend would be vulnerable."

Foreign institutional investors purchased shares worth Rs 3,632.30 crore on Friday, according to exchange data.

The six-member Monetary Policy Committee of the RBI on Friday decided to keep the benchmark repurchase (repo) rate at 6.5 per cent.

The central bank raised its forecast for economic growth to 7 per cent from 6.5 per cent, maintaining India's position as the world's fastest-growing major economy, after a stronger-than-expected 7.6 per cent growth in the July-September quarter.

In the broader market, the BSE largecap index moved up marginally by 0.10 per cent, while the midcap gauge slipped by 0.16 per cent and smallcap declined by 0.44 per cent.

Among sectoral indices, IT, teck and bankex rose by 1.08 per cent, 0.97 per cent and 0.89 per cent, respectively.

On the other hand, utilities lost by 1.72 per cent and power slid 1.58 per cent.

Besides, FMCG fell 1.13 per cent, telecommunication declined 0.73 per cent, auto went down by 0.65 per cent and and energy lowered by 0.64 per cent.

Elsewhere in Asia, Shanghai Composite gained 0.11 per cent, while the Nikkei 225 and Hang Seng fell by 1.68 per cent and 0.15 per cent, respectively.

European markets were trading higher with France's CAC 40 gaining by 0.91 per cent and London's FTSE 100 rising by 0.55 per cent. Germany's DAX was trading 0.39 per cent higher.

The US markets ended with significant gains in overnight trade on Thursday, with the Nasdaq rallying more than 1 per cent.

Global oil benchmark Brent crude was trading 1.62 per cent higher to USD 75.25 a barrel.

On Thursday, the 30-share index fell 132.04 points, or 0.19 per cent, to close at 69,521.69. Nifty declined 36.55 points, or 0.17 per cent, to settle at 20,901.15.