Automakers propel Sensex and Nifty to all-time highs

The Sensex and the Nifty 50 rose almost a percent each to hit their fresh all-time highs on Thursday with gains led by automaker heavyweights, including Mahindra and Mahindra, Maruti Suzuki, and Tata Motors.

The Sensex hit a fresh record high of 85,930.43 before closing 0.78 percent higher at 85,836.12. The Nifty 50 made a fresh peak of 26,250.90 but closed at 26,216.05, up 0.81 percent. 

While the large caps stole the show, mid-and small-cap segments remained subdued. The BSE Midcap index ended almost flat, and the BSE Smallcap index dropped 0.39 percent.

The overall market capitalisation of BSE-listed firms rose to ₹477 lakh crore from ₹475 lakh crore in the previous session, making investors richer by about ₹2 lakh crore in a day.

As many as 257 stocks, including ITC, Mahindra and Mahindra, NTPC, Bharti Airtel, Bajaj Finserv and Sun Pharma, hit their fresh 52-week highs in intraday trade on BSE.

What pushed the indices up today?

Positive global cues and gains in select auto, FMCG and other index heavyweights drove the Indian stock market benchmarks to higher levels on the monthly derivatives expiry day.

Shares of Maruti Suzuki, Mahindra and Mahindra, Reliance Industries, Tata Motors, ITC and Hindustan Unilever were the top contributors to the gains in the Nifty index.

As many as 41 stocks ended with gains in the Nifty 50 index. 

Global markets across Europe and Asia traded in the green following China’s announcement of key measures to bolster its economy. Adding to the positive sentiment is the start of the rate-cut cycle in the US, which has further buoyed market optimism.

Bouyancy in foreign markets

"Winding up of positions by investors on the monthly expiry day coupled with buoyancy in Asian and European market cues triggered a sharp upsurge as both the Sensex and the Nifty scaled fresh highs," said Prashanth Tapse of Mehta Equities.

"Buying in banking, auto, and metal stocks led the rally in benchmark indices, with the Sensex now inching towards the 86,000 mark. Falling bond yields in the US and some other developed economies, coupled with stimulus announcements by China, have fuelled fresh optimism in global equity markets, including India," said Tapse.

(By arrangement with livemint.com)