NSE Nifty breaches 8,000-mark for first time to end at record close of 8,027.70 while BSE Sensex up 229.44 pts at new high of 26,867.55.
India's NSE index surged past the psychologically important 8,000 level for the first time on Monday as blue-chips such as ICICI Bank gained after better-than-expected quarterly economic growth data.
Data showing India's economy grew a faster-than-expected 5.7 percent in the April-June quarter has reinforced hopes that Prime Minister Narendra Modi's election victory nearly four months ago will help spark a recovery in investments and confidence.
“The market opened up with a huge gap on the back of better annual GDP numbers, which rose to 5.50% v/s 4.60% of the last year. Technically, Nifty closed above an important psychological resistance level of 8000, which is something really extra ordinary for the Indian markets and since the result of exit polls of the election Nifty rose by 1000 points. Outcome on the coal block allocation was also not too harsh as it was expected and that has also helped the market to close at day’s highest around 8034. Auto, Metal, Power, Infra and banks did well. Technically, the Nifty has next major hurdle between 8050 and 8060. Any strong reversal from these will be negative for the Nifty in the short term as in that case it may even fall 7970 again. However sustenance above 8060 should lift indices beyond 8100 levels," says Shrikant Chouhan, Head- Technical Research, Kotak Securities.
Resources firms rallied late in the session after the country's top government lawyer proposed to the Supreme Court that about 40 of the 218 coal mines it declared illegal should not be taken back from the companies that operate them as they were either producing or were close to producing.
The court is due to rule later in the day about whether to cancel the allocations of coal blocks it ruled as illegal last week, which could create uncertainty in a sector that generates the bulk of the country's electricity.
"We seem to be in the initial stages of a bull phase. Reasonable valuations relative to other emerging markets, coupled with healthy growth prospects for the economy, lead us to believe that we should move to a bull phase over the next few years," said Motilal Oswal, chairman