Sensex, Nifty continue to move up

Stocks of oil marketing companies gained on the back of falling Brent crude prices, as BSE Sensex closed at 26420.67, up 29.71 points.

Benchmark stock indices, on Tuesday, continued their upward movement touching their all-time highs for the second consecutive day this week following sustained buying by institutional investors. Including Tuesday, the key indices have been continuously rising for the last six trading days on improvement in domestic sentiment and positive cues from global markets.

The S&P BSE Sensex surged 0.53 per cent to scale an intra-day high of 26350.67, its highest mark so far, before closing at 26420.67, up 29.71 points. There was broad-based buying and the market was volatile due to profit-booking at higher levels.

Banking and capital goods stocks witnessed profit-booking. Stocks of oil marketing companies gained on the back of falling Brent crude prices that has plunged to 14-month low of $101.60 a barrel, the lowest since June, 2013. Auto stocks were also in demand.

The NSE Nifty also closed at its record high of 7897.50, up 23.25 after touching the intra-day high of 7918.55.

“The market liked what Prime Minister Narendra Modi said and those who have invested in stocks also like his actions. So there is inflow of funds from domestic institutions and foreign institutional investors (FIIs) and this is why the market is rising,” said Arun Kejriwal, founder Kejriwal Research, an advisory firm.

“There is optimism that FII inflow will persist and this is why the sentiment is positive. The reduction in crude oil prices also adding to the positive sentiment. There is also hope that inflationary concerns will be addressed over a period of time,” said Vijay Bhambwani, CEO, BSPL India.com which is into investment advice.

However, some analysts feel that the rally will halt. “After this vertical recovery, we expect the index to take a pause in the next session but stock-specific move would continue,” said Jayant Manglik, President-retail distribution, Religare Securities.

Rupee gains 9 paise The rupee on Tuesday appreciated taking cues from strong domestic equity markets where FIIs have been net buyers. It opened at 60.82 and appreciated to 60.65 before closing with a gain of 9 paise at 60.68 to a dollar.