MUMBAI: Despite concerns over expensive market valuations and absence of any major trigger, both the benchmark Sensex and Nifty rallied further on Monday and set new records as the bullish mood continued on the bourses.
Overcoming volatility at the outset, the Sensex bounced from the early low of 14372.36 and later surged to a new trading peak of 14526.51 before closing at an all-time high of 14515.90, netting a rise of 112.13 points over Friday's close of 14403.77.
The broader S&P CNX Nifty of the National Stock Exchange touched a new trading high of 4219 and closed at a new peak of 4215.35 against the previous close of 4183.50, a smart gain of 31.85 points.
The market set aside concerns over reports that market valuations looked expensive as well as worries about increased inflation pressures, brokers said, attributing the extension of gains to sustained foreign institutional investment inflows and investors' appetite for blue chip stocks even at current levels.
Metal shares came under fresh pressure induced by sustained losses in metal prices.
However, Tata Steel shares recovered smartly after two days of battering. The BSE metal index fell by 111.55 points or 1.18 per cent to 9345.74. The market lacked any major trigger but there was a lot of FII activity, they added.
Foreign institutional investors reported inflows of Rs. 665.57 crore on February 2, the previous trading day, and domestic mutual funds pumped in Rs. 108 crore on the same day.
Sensex heavyweights such as RIL, HDFC, Bharti Airtel, SBI, Reliance Comm, Maruti Udyog, L&T and Hero Honda registered remarkable gains.
The market breadth remained positive with 1,537 shares recording gains and 1,138 registering losses.
The trading volume dipped to Rs. 4,722.14 crore from Rs. 5,631.97 crore on Friday. Shree Ashtavinayak was the top traded share with the highest turnover of Rs. 315.41 crore followed by Auto Ind. (Rs. 227.69 crore) and Reliance Communications (Rs. 169.56 crore). PTI