The US Sensex, Nifty-based funds stormed historic gains in stocks today as global markets rallied yesterday after the US cut interest rates by half a percent more than expected by the Federal Reserve and foreign funds were expected to re-inflow funds into Indian stock markets in anticipation of better returns. Foreign Portfolio Investors-FPIs bought stocks worth Rs.14,065 crores in India in a single day today and in a stormy boom Sensex crossed the 84000 level for the first time and Nifty crossed the 25700 level to a new record high. Despite the intra-day volatility seen on the geopolitical tension factor of the war between Lebanon and Israel, US interest rates fell as foreign funds felt India was safer to invest in, while Sensex, Nifty heavyweights bought aggressively today. Investors’ wealth increased by Rs 6.24 lakh crore today on the back of the surge in Sensex.
Auto stocks including Mahindra & Mahindra, Maruti Suzuki and banking stocks including ICICI Bank, HDFC Bank, Kotak Mahindra Bank as well as FMCG, capital goods heavyweight stocks and stocks including Bharti Airtel, JSW Steel hit new record highs today. However, against this, funds, operators, high net worth investors continued offloading in many stocks in the small, mid cap and side markets. The Sensex today rose 1509.66 points to hit a new record high of 84694.46 intra-day and finally closed at a new record high of 84544.31 with a jump of 1359.51 points. While the Nifty 50 spot also made a new peak of 25849.25 with an intra-day jump of 433.45 points and finally closed at a new record high of 25790.95 with a jump of 375.15 points.
Capital goods stocks rose:
In the capital goods stocks today, the BSE Capital Goods Index jumped 1660.91 points to close at 73373.89 as the funds bought aggressively. Rail Vikas Nigam rose by Rs.33.80 to Rs.544.25, BHEL rose by Rs.9 to Rs.266.15, Larsen & Toubro rose by Rs.113.05 to Rs.3795.55, Suzlon Ng rose by Rs.2.45 to Rs. .83.42, ABB India rose by Rs.206.30 to Rs.7708.95, Hindustan Aeronautics rose by Rs.103 to Rs.4336.35, AIA Engineering rose by Rs.65.25 to Rs.4314.10, Siemens rose by Rs.97. 15 increased to Rs.6836.95, Polycab increased by Rs.83 to Rs.6559.65.
Bullish in metal stocks:
Foreign Portfolio Investors – FPIs, FIIs had a massive net purchase of Rs 14,064.05 crore worth of stocks in cash today on Friday. A total of Rs.45,388.28 crore was sold against a total purchase of Rs.59,452.33 crore. While DII-domestic institutional investors had a net sale of Rs.4427.08 crore in cash today. A total of Rs 21,414.50 crore was sold against a total purchase of Rs 16,987.42 crore. Metal-mining stocks were also heavily bought by funds today. The boost to the infrastructure sector in the country and anti-dumping duties on steel imports from China, Vietnam were expected to benefit the steel business of Indian companies. Coal India increased by Rs.13.20 to Rs.491.25, Tata Steel increased by Rs.2.45 to Rs.152.05, Hindalco increased by Rs.9.85 to Rs.694.40. The BSE Metal Index rose 571.98 points to close at 31973.89.
