Markets All Pumped Up, Set New Highs On Earnings Optimism

Mumbai (PTI): Showing renewed strength, the Nifty closed above the 9,900 level for the first time and the Sensex set a fresh life high today, building on optimism about corporate earnings.

Most Asian shares ruled firm, picking up cues from stronger than expected economic growth in China and expectations that the Federal Reserve will tread with care in tightening its policy, given lacklustre data, which led to a record close in the US on Friday.

Investors were optimistic that blue-chip companies might post encouraging first quarter numbers in coming days. On top of it, monsoon progress so far has been above-normal.

The 30-share Sensex jumped further to set a life-time high of 32,131.92, before ending up 54.03 points, or 0.17 per cent, at a new record 32,074.78. It broke its previous life high of 32,037.38, hit on July 13.

The gauge has lost 16.63 points on Friday.

The 50-share index ended above the 9,900 level for the first time by surging 29.60 points, or 0.30 per cent, at new peak of 9,915.95, surpassing its previous closing high of 9,891.70 hit on July 13.

“Start of Parliament’s Monsoon Session and anticipations of any updates on the banking sector pushed Nifty within striking distance of 10,000. Investors look less daunted by psychological mark as earnings season has encouraged a stock specific approach,” said Anand James, Chief Market Strategist, Geojit Financial Services.

Wipro rose the most, up 3.12 per cent, ahead of its board meeting to discuss buyback of shares.

Infosys firmed up 1.37 per cent after the company on Friday posted better-than-expected earnings and maintained 2017-18 revenue growth guidance.

Other big gainers were Adani Ports, ICICI Bank, Cipla, Hindustan Unilever and Reliance Industries.

Jubilant FoodWorks surged 9.31 per cent after the company today reported 25.53 per cent jump in net profit for the June quarter.

The BSE realty index came out on the top with a gain of 1.28 per cent. Metal, IT and technology indices followed.

The broader markets too turned better.