Mumbai. The BSE Sensex closed at a new all-time high on Tuesday, climbing nearly 91 points on expectations of a reduction in interest rates in the US. The NSE Nifty also closed above the 25,400 level for the first time. The market was supported by strong global trends ahead of the much-awaited decision on interest rates by the US central bank Federal Reserve.
Continuing its record-making streak for the second day, the 30-share BSE Sensex closed at an all-time high of 83,079.66, up 90.88 points or 0.11 per cent. During trading, it rose 163.63 points or 0.19 per cent to reach 83,152.41. The NSE Nifty closed at a new peak of 25,418.55, up 34.80 points or 0.14 per cent.
Among the 30 Sensex companies, Bharti Airtel, NTPC, Mahindra & Mahindra, Kotak Mahindra Bank, Titan, Larsen & Toubro, ICICI Bank, Bajaj Finance, Hindustan Unilever and Reliance Industries saw significant growth. On the other hand, Tata Motors, Tata Steel, Adani Ports, JSW Steel, ITC and Asian Paints were in loss. In Asian markets, Hong Kong’s Hang Seng closed with a gain, while Japan’s Nikkei closed with a decline. China’s Shanghai Composite and South Korea’s Kospi remained closed.
European markets were in positive territory during trading. US markets closed mostly with gains on Monday.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The Indian market once again registered a slight rise in anticipation of the US Federal Reserve cutting the policy rate. The market has assumed that a quarter percent cut is certain, but all eyes are on the Federal Reserve’s comments about the health of the economy and future cuts.” The US Federal Reserve will announce the monetary policy on Wednesday.
Religare Broking Limited Senior Vice President (Research) Ajit Mishra said that after a flat start, Nifty remained in a limited range and realty and auto stocks registered gains, while metal and pharma stocks declined. Prashant Tapase, Senior Vice President (Research), Mehta Equities Limited said that the market traded in a limited range for the second consecutive session ahead of the US Fed policy meeting decision on Wednesday.
He said that due to Anant Chaturdashi, investor participation was low, and hence buying was seen in select key stocks.
According to government data released on Tuesday, wholesale inflation fell for the second consecutive month to 1.31 percent in August. Wholesale inflation has come down due to reduction in prices of vegetables, food items and fuel. The BSE Smallcap index related to small companies fell by 0.13 percent and the Midcap index related to medium companies fell by 0.08 percent.
Sector-wise, realty rose by 0.64 percent, telecom by 0.46 percent, public services companies by 0.44 percent, technology by 0.34 percent, automobile by 0.33 percent and IT by 0.11 percent. On the other hand, commodity, industrial, capital goods, metal and service sectors declined. According to stock market data, foreign institutional investors sold shares worth Rs 1,634.98 crore on Monday. Global oil benchmark Brent crude fell 0.25 percent to $ 72.52 per barrel.