The bull run in Sensex and Nifty was powered by gains in Reliance, TCS and ITC.
The Sensex and Nifty touched new all-time highs today. The Sensex today rose as much as 269 points to hit record high of 30,590.71 and Nifty soared to all-time high of 9,517, advancing as much as 72 points. Sensex and Nifty's surge to record highs was on the back of gains in bluechip stocks like Reliance Industries, TCS, ITC, Bharti Airtel and Tata Motors. The bull run in Sensex and Nifty gained momentum after foreign institutional investors resumed buying shares in Indian markets after a pause in the month of April.
Stock market analysts expect the Nifty to move up to 9,600-9,700 levels in the ongoing rally in the stock markets.
AK Prabhakar, head of research at IDBI Capital Markets and Research, says "Liquidity is moving the markets higher and the recent rally in the markets can take Nifty to 9,600-9,700 levels before any meaningful correction comes. However, a correction would be welcome step for long term investment perspective."
Sensex and Nifty have been on a tear since start of this year on the back of sound macro-economic fundamentals, improved performance by the Indian corporates and hopes of July roll-out of the proposed Goods and Services Tax (GST). Meanwhile, renewed hopes of rate cut by the Reserve Bank of India after inflation fell close to its lowest level in 5 years also added to the already bullish sentiment for the Sensex and Nifty.
The Sensex has so far in 2017 surged a whopping 14.6 per cent and the Nifty has zoomed 15.96 per cent.
Meanwhile, in intraday deals, the Sensex and Nifty came off the record highs as traders resorted to a mild profit booking in select banking, metal and capital goods shares.
From the Nifty basket of shares, 30 were advancing while 21 were declining. Bharti Airtel was the top Nifty gainer, the stock rose over 3 per cent after MSCI increase weightage of Bharti airtel in the MSCI India index. The stock is likely to witness inflow of $44 million on this rejig, say analysts.
TCS rose nearly 2 per cent after India's biggest software outsourcer announced that it will start Rs 16,000 share buyback from May 18 and end on May 31.
ACC, Bharti Infratel, Wipro, Reliance Industries, Tata Motors, Indian Oil and IndusInd Bank were also among the gainers. While, Indiabulls Housing Finance, Asian Paints, Hindalco, Kotak Mahindra Bank and Larsen & Toubro were among the losers.
As of 3:18 pm, the Sensex was up 260 points at 30,583 and Nifty rose 69 points to 9,514.