Mumbai. On Tuesday, the BSE Sensex crossed 85,000 points and the NSE Nifty crossed 26,000 points for the first time during trading in the local stock market. However, later due to selling in companies manufacturing daily use goods and some bank shares, the Sensex and Nifty closed with a stable trend. The BSE Sensex based on 30 shares closed at 84,914.04 points with a decline of 14.57 points or 0.02 percent. With this, its record rise continuing for three days came to an end.
The BSE Sensex reached the 85,000 mark for the first time in the morning trade. During trading, it reached its highest level of 85,163.23 points with a gain of 234.62 points or 0.27 percent. Metal stocks gained momentum after China announced stimulus measures to boost the economy.
However, later in the afternoon trade, due to profit booking at record levels, it fell to the day’s low of 84,716.07 points.
The market came down due to selling in Hindustan Unilever, Kotak Mahindra Bank and ICICI Bank. NSE Nifty closed at 25,940.40 points with a nominal gain of 1.35 points or 0.01 percent. During trading, it had at one time climbed 72.5 points to a new record level of 26,011.55 points. According to traders, investors are not getting any clear indication for the future direction after the record rise.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Domestic benchmark indices are trying to reach new heights. The market is gaining momentum from the aggressive reduction in policy rates by the US Federal Reserve. Meanwhile, the rate cut by the Chinese central bank and additional stimulus measures have influenced investor sentiment globally. This led to a rise in domestic metal stocks.” He said that on the other hand, profit booking was done at high levels in fast moving consumer goods (FMCG) companies and bank stocks. Strong capital inflows are expected from foreign institutional investors in the near future. The reason for this is the liberal scenario of the Federal Reserve and the expectation of a reduction in policy rates by the Reserve Bank of India in October. ” Among the 30 Sensex companies, Hindustan Unilever, UltraTech Cement, Kotak Mahindra Bank, IndusInd Bank, Titan, Nestle, Bajaj Finance and Asian Paints suffered the most.
On the other hand, Tata Steel, Power Grid, Tech Mahindra, HCL Tech, Mahindra & Mahindra and JSW Steel were among the gainers. The BSE Midcap index, related to mid-sized companies, rose 0.21 percent while the Smallcap index, related to small companies, fell 0.04 percent.
Prashant Tapase, Senior Vice President (Research), Mehta Equities Ltd. said, “The market closed soft in a volatile trade. But both the benchmark indices reached new record levels. This shows that cash flow remains strong as investors have faith in India’s long-term growth story.” In other Asian markets, South Korea’s Kospi, Japan’s Nikkei, China’s Shanghai Composite and Hong Kong’s Hang Seng remained in positive territory. Shanghai and Hong Kong markets closed with significant gains.
European markets were in profit during trading. US markets were in gain on Monday.
According to stock market data, foreign institutional investors bought shares worth Rs 404.42 crore on Monday. Credit rating agency S&P Global Ratings on Tuesday maintained its forecast for India’s economic growth at 6.8 percent for the current financial year. It also said that the Reserve Bank of India may cut the policy rate in the October monetary policy review. Global oil benchmark Brent crude jumped 2.35 percent to $ 75.64 per barrel.