Overcoming a weak start, Indian markets recovered to hit a new high today, with Sensex rising as much as 358 points to a new high of 40,606. The broader Nifty also hit 12,000 after a gap of five months. The Sensex closed 221 points higher at 40,469, also a new closing high, while Nifty settled 0.37% higher at 11,961.
The rebound was led by banking stocks. The Nifty Bank index was up over 1%. ICICI Bank, IndusInd Bank, Kotak Bank, RBL Bank, HDFC Bank and Axis Bank rose between 1% and 2.5%.
Shares of Infosys ended 2.4% higher today. Infosys, in a stock exchange filing today, strongly condemned the mischievous insinuations made by anonymous sources against the cofounders and former colleagues, suggesting their involvement in the recent whistleblower allegations.
Tata Motors, HUL and L&T were among the other top gainers in the Sensex pack.
Better-than-expected earnings from some market heavyweights, the corporate tax rate cut, expectations of more measures from the government to boost the economy and a positive global backdrop have helped Indian markets to hit new highs.
Finance Minister Nirmala Sitharaman on Tuesday said that the government and the Reserve Bank of India (RBI) are in the process of resolving the issues faced by the real estate sector. She said that real estate has a spillover effect on many sectors, hence addressing its issues will benefit industries such as cement and steel, who are the major suppliers.
“If the government actually moves ahead with some good measures to revive the real estate sector then a couple of very strong buildings/factories construction companies that only do EPC will be prime beneficiaries,” market analyst Sandip Sabharwal tweeted.
The Nifty Realty index was up over 2% today. DLF, Godrej Properties and Prestige were up between 3% and 4%.
Shares of Titan fell 10% after the Tata group company posted a muted second quarter earnings. “The quarterly numbers came in lower than expected. The company also cut its guidance for the second half,” HDFC Securities said in a note.
(With Agency Inputs)