BSE Sensex, NSE Nifty hit record highs on Narendra Modi hopes

Aug 18 2014, 21:54 IST
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ICICI Bank rose 3.6 percent, while Larsen and Toubro advanced 2.2 percent. ICICI Bank rose 3.6 percent, while Larsen and Toubro advanced 2.2 percent.
SummarySensex rises 288 pts to end at new record high of 26,390.96.

Rising for the fifth day, benchmark Sensex today gained over 287 points to log a new closing peak of 26,390.96 and the Nifty soared about 83 points to close at new record of 7,874.25 as investors cheered PM Narendra Modi's August 15 pledge to boost infrastructure and manufacturing.

Besides, encouraging June quarter earnings by several bluechip companies and positive global cues on easing geo-political tensions over Ukraine, also bolstered the domestic sentiments, said brokers.

After moving in a narrow range in early trade, the 30-share Sensex climbed to new intra-day high of 26,413.11 as buying momentum picked up. Thus, it bettered its previous all-time peak of 26,300.17 hit on July 25, 2014.

Boosted by a flurry of buying in PSU, oil and gas, capital goods, banking, infrastructure, consumer durables, auto and metal scrips, the Sensex settled at 26,390.96 -- a new record at close -- gaining 287.73 points or 1.10 per cent. Its previous record at close was 26,271.85 reached on July 24. In five sessions, the gauge has rallied over 1060 points.

"Today the Nifty performed much better than world markets and beat the expectations of optimistic bulls. Fall in crude prices and likely chances of rise in domestic currency has developed the momentum and that has triggered massive short covering towards the end. By crossing 7800, the Nifty has set up the target of 8000 plus in the near term. However, buying is advisable on dips around 7800. Today almost all banks, capital goods and infra stock did extremely well. Auto stocks also did well, especially Tata Motors and Maruti. We are of the view that technology stocks are going to underperform in the near term but buying in mid cap IT stocks should do well," said Shrikant Chouhan, Head of Technical Research, Kotak Securities.

ICICI Bank, ONGC, Tata Motors, Axis Bank, Cipla and BHEL were among prominent gainers in 24 Sensex counters that rose.

The 50-scrip NSE Nifty also reclaimed the 7,800-mark for the first time since July 25, by climbing 82.55 points, or 1.06 per cent to close at new high of 7,874.25. It surpassed its previous high at close of 7,830.60 on July 24.

The broader index also hit an intra-session record high of 7,880.50, surpassing previous peak of 7,840.95 (July 24).

"Markets witnessed a strong rally, which was boosted by positive statements from Prime Minister

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