Nifty goes past 16,000-mark, Sensex gains 872 points as markets soar on economic recovery hopes
Both the benchmark indices hit all-time highs in intra-day trading. Though they fell from that mark, the indices finished at record closing highs.
Equity markets soared on Tuesday as stocks of information technology and consumer goods firms rallied on economic indicators showing an uptick. The 50-share NSE Nifty surpassed the 16,000-mark for the first time, while the 30-share BSE Sensex gained 1.65% during the day’s trading.
Sensex closed at 53,823.36, gaining 872.73 points and Nifty rose by 245.6 points to finish at 16,130.75. Both the benchmark indices hit all-time highs in intra-day trading. Though they fell from that mark, the indices finished at record closing highs.
Experts pointed out that a strong Goods and Services Tax collection in July and robust figures for June factory output indicated a recovery in demand.
The GST collection for the month of July rose to Rs 1,16,393 crore, after slipping below the Rs 1 lakh-crore mark for the first time in eight months in June. Meanwhile, the output of eight core sectors rose by 8.9% in June, compared to the same month last year.
“This surge in the market is backed up with strong performance from the industry leaders [in financial results for first quarter] like HDFC from banking, TCS and Infosys from IT pack,” Rahul Sharma, co-founder of brokerage firm Equity99 told the Mint. “Big support is coming from FMCG [fast moving consumer goods] giants like UBL [United Breweries], Britannia and Marico.”
In Tuesday’s trading, stocks of large-cap entities like Titan, HDFC, Nestle, State Bank of India were among the top gainers. All major information technology stocks also finished with gains in the range of 0.5% to 1.50%.
Tata Steel and Bajaj Automobiles were the only notable firms to suffer losses.