Benchmarks scale fresh peaks; IT, metal, pharma stocks shine
Mumbai: The BSE Sensex defied gravity for the eighth straight session to finish at yet another record high on Wednesday as positive global cues and robust foreign fund inflows fuelled risk-on sentiment.
The government approving a Rs 2 lakh crore production-linked incentive package for various sectors also buoyed investors, traders said.
After touching its all-time peak of 43,708.47 during a see-saw session, the 30-share BSE index settled 316.02 points or 0.73 percent higher at 43,593.67.
Similarly, the broader NSE Nifty vaulted 118.05 points or 0.93 percent to close at a record 12,749.15. Intra-day, it touched its all-time high of 12,769.75.
Both the key indices scaled record highs for the third session on the trot.
Tata Steel was the top gainer among the Sensex constituents, surging 7.39 percent, followed by Axis Bank, Bajaj Finserv, ITC, Sun Pharma, Infosys, L&T, and Bharti Airtel.
Kotak Mahindra Bank spurted 3.12 percent after MSCI said it will add the private sector lender and 11 other domestic firms to the MSCI India Index.
On the other hand, IndusInd Bank, Reliance Industries, Titan, Asian Paints, HUL, and HDFC Bank closed in the red, tumbling up to 5.62 percent.
The Cabinet on Wednesday approved offering Rs 2 lakh crore worth of production-linked incentives to 10 more sectors to boost domestic manufacturing.
The incentives will be offered for sectors such as white goods manufacturing, pharmaceutical, specialized steel, auto, telecom, textile, food products, solar photovoltaic, and cell battery.
Global markets remained upbeat on continued optimism over Pfizer's COVID-19 vaccine news.
"Domestic markets remained upbeat and extended gain for the eighth consecutive day as positive sentiments among investors following clarity of coronavirus vaccine by BioNTech-Pfizer and strong 2Q FY21 corporate earnings persist. While the market witnessed some amount of volatility today led by profit booking in some of the heavyweights, a sharp rebound in pharma, metals, IT, and auto stocks supported the market rally.
"As the market has already witnessed a sharp run up and valuations appear to be quite stretched at the current level, profit-booking at these levels cannot be ruled out and therefore investors should be cautious at these levels. We continue to believe that a strong earnings rebound still looks to be difficult given ambiguity over CAPEX cycle recovery," said Arjun Yash Mahajan Head Institutional Business at Reliance Securities.
BSE metal, healthcare, IT, tech, utilities, power, and auto indices rose as much as 3.51 percent, while energy and consumer durables finished in the red.
Broader BSE midcap and smallcap indices spurted up to 0.77 percent.
Elsewhere in Asia, bourses in Shanghai and Hong Kong ended in the red, while Seoul and Tokyo closed with gains.
Stock exchanges in Europe were trading on a positive note in early deals.
Meanwhile, international oil benchmark Brent crude was trading 3.12 percent higher at USD 44.98 per barrel.
Foreign institutional investors remained net buyers in the capital markets, buying shares worth Rs 5,627.32 crore on Tuesday, according to provisional exchange data.
The rupee declined 18 paise to close at 74.36 against the US dollar on Wednesday, tracking strengthening American currency in the overseas market and higher crude prices.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Sabarimala gold loss: How did the accused reach Rahul's home, asks Vijayan
Thiruvananthapuram (PTI): Kerala Chief Minister Pinarayi Vijayan on Tuesday hit back at Rahul Gandhi for targeting the ruling CPI(M) over the Sabarimala gold loss case during a poll campaign, questioning how the accused in the case had managed to reach the Congress leader's home.
The Marxist veteran was apparently referring to a widely circulated purported photograph in which the prime accused in the Sabarimala gold loss cases, Unnikrishnan Potty, accompanied by some senior Congress leaders, was seen with Sonia Gandhi at her residence in Delhi.
He also said people have already given a reply to Rahul, the Leader of Opposition in the Lok Sabha, on this matter.
The CM's reaction came a day after Rahul sang a line from a popular parody song about CPI(M) leaders' alleged roles in the gold theft at the Sabarimala temple while addressing a corner meeting as part of the assembly polls campaign in Pathanamthitta district.
As he sang the line "swarnam kattathu aarappa" (who stole the gold of Ayyappa) from a song used by the Congress-led UDF to target the ruling Left during the local body polls a few months ago, at the meeting in Pathanamthitta -- the district where the hill shrine of Lord Ayyappa is located-- the crowd cheered Rahul.
Soon after Gandhi targeted the Left party over the gold loss issue, CPI (M) activists began a social media campaign making allegations against his mother and former party chief Sonia Gandhi in connection with the matter.
While replying to a question regarding this, CM Vijayan said the Congress leader already got a befitting reply and should he also repeat the same.
"If he thinks about how all those who were involved in the stealing had reached his home...then he will get a reply. Anyway, we don't have any such flaws," Vijayan added.
Attacking the Left and the BJP over the Sabarimala gold loss issue, Rahul Gandhi on Monday had said that Prime Minister Narendra Modi had forgotten about what happened in Sabarimala, during his visit to Palakkad as part of election campaign.
Rahul claimed that the prime minister remained silent to avoid damaging the LDF.
He had also said that a UDF government would ensure that those responsible for alleged irregularities related to the temple are punished.
