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Sensex up 102 Points up Near Record Highs Powered by Gains

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The BSE Sensex notched up yet another century and ended 100 points higher on the prospects of the Index of Industrial Production (IIP) data and consumer price Inflation, which will be announced later in the evening at 5.30pm. The BSE index Sensex ended at 25,576.21, up 102.32 points and the 50-share NSE index Nifty ended at 7,649.90, up 23.05 points.

The chart toppers this evening were held by Hindalco BSE 3.78 % (up 3.72 per cent), Sun Pharmaceuticals (up 2.86 per cent), HDFC (up 2.56 per cent), HDFC Bank BSE 2.37 % (up 2.43 per cent) and Maruti (up 1.97 per cent) were among the major gainers in the Sensex. While the downside was led by Bharti Airtel BSE -3.57 % (3.92 per cent), Axis Bank BSE -1.90 % (1.97 per cent), Coal India BSE -2.31 % (1.72 per cent), BHEL BSE -1.17 % (0.77 per cent) and Infosys BSE -0.38 % (0.64 per cent) among the top index losers.

The Sensex finally seems to cool off from the record high by shedding almost 110 points in the previous session, recovered 55.77 points or 0.22 per cent to 25,529.66 in early trade. Analysts say this could well be the trend going forward and the market may consolidate as inflows from FII’s are going down. Following the lines of the broader market, the BSE Midcap Index was up 0.52 per cent and the S&P BSE Small cap Index closed 0.36 per cent.

Meanwhile Shares of Infosys seem to be unperturbed after the company announced Vishal Sikka as the next CEO & MD of company. NR Narayana Murthy, who was appointed to a five-year term, will step down as Executive Chairman this Saturday, on June 14.

In spite of the Indian markets ending on the higher side, the trading was choppy amid profit-booking. Oil stocks continued their high run on the back of policy reforms in the sector by the newly elected Modi government.

From the start of this year, BSE Sensex has put on over 20.81%, with foreign institutional investors (FIIs) being the main ingredient with purchase of $9.31 billion from the local equity markets. The market breadth was positive on the BSE with 1743 gainers against 1360 losers.

Reserve Bank of India (RBI) Deputy Governor H R Khan said on Thursday that they are not considering raising the foreign investment limit in Government any time in the near future, “Right now there is no such discussion,” Mr Khan said, in response to a question on raising the foreign institutional investment (FII) limit in government debt, on the sidelines of a banking seminar.

Currently there is an permit of up to $30 billion in government bonds, of which $20 billion is for all and $10 billion is allowed for only particular investors like foreign central banks, sovereign wealth funds, pension funds and insurance funds. However, the $20 billion has been already been breached on the back of an auction of the residual 71.52 billion rupees on Wednesday.