(RTTNews.com) – India’s key benchmark indexes hit fresh record highs on Wednesday, with the Nifty index closing above 8,700 for the first time on the back of strong foreign fund flows amid growing optimism that a low interest rate regime will kick-start the investment cycle.
The BSE Sensex and broader Nifty index hit record highs for the second consecutive session, led by strong buying in consumer durable, capital goods and telecom stocks on hopes that slumping oil prices will help slow inflation and narrow the country’s current account deficit.
The Sensex hit a record high of 28,958.10 before paring gains to close up 104.19 points or 0.36 percent at 28,888.86. The Nifty index closed up 33.90 points or 0.39 percent at 8,729.50 after climbing to a record high of 8,741.85 earlier in the day.
FMCG giant Hindustan Unilever led the gainers, climbing 5.4 percent to Rs.943.40, while mortgage lender HDFC jumped 3.1 percent, rising for the second straight day. Hero MotoCorp, Infosys, SBI, Coal India, Grasim, PNB, Bharti Airtel and Bank of Baroda rose 2-4 percent. Tata Elxsi soared 9 percent on strong Q3 earnings.
Among those that fell, cigarette maker ITC tumbled 5.2 percent after posting dismal Q3 results. Sesa Sterlite dropped 2.3 percent after the company issued clarification with regard to news item pertaining to Sesa Sterlite merger. SpiceJet plunged 8.3 percent on a report lessors want the struggling carrier to return 15 Boeing planes.
On the global front, the Asian markets rose broadly amid expectations that the world’s central banks will keep their easy monetary policies in place for a lot longer. While Chinese shares spearheaded the rise following sharp losses at the start of the week, Japanese shares retreated on a stronger yen in the wake of Bank of Japan’s decision to leave its asset purchase policy unchanged.
European stocks were mixed in early trading as investors locked in some profits following a four-day rally on expectations the European Central Bank will unveil a full-scale bond-buying program when its governing council meets on Thursday.
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