The equity benchmark indices Sensex and Nifty closed at record high levels on Wednesday afternoon, after banking stocks surged in trade following the news of government borrowing requirement being cut. Notably, Sensex closed at a fresh high of 35,081 points, 310 points above its opening, buoyed by a rise in shares of Axis Bank, SBI, ICICI Bank, Infosys and Yes Bank which surged by more than 2.5% each. 21 stocks in the 30 share barometer ended in green on Wednesday afternoon.
The broader 50-share Nifty touched 10,800 for the first time in history, however, closed a few points lower at 10,788. Axis Bank, Aurobindo Pharma and Adani Ports surged by more than 2% each in the day. 38 shares registered gains, while 12 shares of the Nifty ended in red this afternoon.
It took 17 sessions for the Sensex to reach the 35,000 mark from 34,000 level reached on December 26. Strong gains in banking, IT, FMCG and capital goods stocks helped the index top new milestone. Sentiments got a boost after the government today lowered the additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore estimated earlier, brokers told PTI. Analysts said strong liquidity in the market following unabated buying by foreign funds inflows and encouraging Q3 earnings by some companies lifted the mood.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 693.17 crore while domestic institutional investors (DIIs) had sold equities worth a net Rs 246.38 crore yesterday, as per provisional data. Driven by the news of government borrowing requirement being cut, banking stocks surged during the morning trade, with indices gaining around half a percent.
“The move is a big positive surprise. We were mindful of the indirect tax collection falling short of expectations. In that context, this is a big surprise. It also means that a shortfall in indirect taxes is being made up (for). All in all, this is a positive surprise, which is getting reflected in the market,” Manishi Raychaudhuri, Asian Equity Strategist, Equity Cash Asia Pacific, BNP Paribas told CNBC TV18. Benchmark indices continued to hit fresh record highs on Wednesday ahead of corporate earnings and Union Budget.
