Extending their winning streak into the seventh consecutive session, domestic equity benchmarks scaled fresh all-time highs yet again before settling at fresh closing peaks.
Sensex hit a new all-time high of 63,303.01 while the Nifty scaled its new peak of 18,816.05 in intraday trade. Both indices retreated slightly but ended at fresh closing peaks.
The Sensex settled at 63,099.65, up 418 points, or 0.67 percent while the Nifty closed the day at 18,758.35, up 140 points, or 0.75 percent.
The gains were broad-based as the BSE Midcap index rose 1.06 percent while the Smallcap index rose 0.61 percent.
The overall market capitalisation of BSE-listed firms jumped to ₹288.5 lakh crore from ₹286.2 lakh crore in the previous session, making investors richer by ₹2.3 lakh crore in a single day.
Analysts pointed out that the sustained capital inflow by foreign investors has supported the market even as global cues were mixed ahead of the Fed Chair's speech later today which will likely signal the course of rate hikes in the coming months.
"Domestic market continued its quest for gains, boosted by FII inflows. However, markets will be sensitive to the Fed Chair’s remarks later in the day, as investors expect a moderation in rate hikes. An In-line comment will help to sustain the rally while loosening Covid-19 restrictions in China is providing relief to global markets," said Vinod Nair, Head of Research at Geojit Financial Services.
Shares of Mahindra and Mahindra, UltraTech Cement and Power Grid Corporation ended as the top gainers in the Sensex index. Conversely, IndusInd Bank, SBI and HCL Tech ended as the top laggards in the benchmark index.
On the sectoral front, barring Nifty PSU Bank (down 1.35 percent), all indices ended in the green. Nifty Metal jumped 1.81 percent, followed by Nifty Auto which rose 1.72 percent. Nifty Realty and FMCG indices rose 1.45 percent and 1.02 percent respectively.
"Sentiment turned extremely bullish towards the closing stages, as renewed foreign institutional buying propelled both the benchmark indices to scale fresh highs. Also, strong European markets opening further bolstered investors' sentiment ahead of the Q2 GDP data announcement," Shrikant Chouhan, Head of Equity Research ( Retail), Kotak Securities, observed.
Crude oil prices gained amid signs of improvement in the demand scenario after speculations that China's strict Covid policy will ease soon. Brent Crude jumped more than 2 percent and traded near the $85 per barrel mark.
The rupee saw sharp gains as the dollar fell ahead of Federal Reserve Chair Jerome Powell's speech. The domestic currency ended 30 paise higher at 81.43 per dollar.
Technical views by experts
Chouhan pointed out that the Nifty holds the uptrend continuation formation and has also formed a long bullish candle on the daily charts which is broadly positive. However, the intraday texture is mildly overbought hence, we could expect some profit booking at higher levels.
"For the trend-following traders, 18,650 would be the trend decider level, above which, the index could move up to 18,900-18,950. However, traders may prefer to exit from their long positions if the index trades below 18,650 and could slip to 18,600-18,550," said Chouhan.
Om Mehra, Technical Associate at Choice Broking observed that the Nifty managed to close above 18,750 which could allow the uptrend to intensify. According to the volume profile, 18,600 may act as robust support while on the upside, 18,880 may act as an immediate hurdle, Mehra said.
Key market data
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of MintGenie.