The Sensex crossed historic level of 31,000 and the broader Nifty moved above 9,600 for first time led by a rally in bluechip stocks like Reliance Industries, HDFC, Infosys, Tata Steel, ITC, Larsen & Toubro and ICICI Bank. Analysts say bullish sentiment on Dalal Street was boosted on reports that monsoon has hit Kerala coast today. Positive global cues added to the sentiment, overnight in the US markets S&P 500 and Nasdaq hit record closing highs on Thursday.
Renewed buying interest came after the markets went through a brief phase of consolidation wherein the mid-cap index plunged over 8 per cent and the small-cap index tanked over 7 per cent.
The Sensex rose as much as 324 points to hit record high of 31,074 and Nifty rallied 95 points to 9,605.
AK Prabhakar, head of research at IDBI Capital Markets and Securities, says today’s move is continuation of yesterday’s 450 point rally in the Sensex.
On the sectoral front, metal shares were witnessing good buying interest. The BSE metal index on the BSE was the top gainer, up nearly 4 per cent on the back of gains in Tata Steel, Hindalco, Vedanta, SAIL India, Jindal Steel, JSW Steel and NALCO, up 3-6 per cent each.
Edelweiss Securities expects non-ferrous companies to sustain earnings momentum on higher base metal prices and operating leverage benefits.