Sensex, Nifty scale new peaks on earnings cheer, F&O expiry

Extending their record-setting run for the second session, Sensex and Nifty ended at fresh lifetime highs today on short-covering following derivatives expiry amid optimism over earnings.

The benchmark BSE Sensex rallied almost 500 points to a life-time high of 33,117.33 and the NSE Nifty scaled the historic 10,340.55 mark in the opening trade as the Finance Minister, Arun Jaitley, had yesterday announced a massive Rs 6.92 lakh crore for infrastructure spending and another Rs 2.11 lakh crore for bank recapitalisation to revive investments and growth.

"Markets touched a new high led by the Government's ideal plan to fix the credit growth and lack of private investment in the country, which was a key drag on the broad economic system". At 9.30 am, the Sensex was up 5 points while Nifty was 6 points below the previous closing.

Similarly, the NSE Nifty 50 closed at a new high of 10,295.35 points, up 0.86 per cent or 87.65 points.

Offloading of positions by participants with Thursday being the last trading session of October series contracts in the derivatives segment pulled the index back from record levels, analysts said.

"Yet another high and no sign of fatigue".

"While today's F&O expiry added some volatility in between, FIIs are likely to get attracted to the domestic tailwinds". Meanwhile, the PSU Bank index increased by 23 percent, against the backdrop of the Rs 2.11 lakh crore-worth recapitalisation of Public Sector Banks (PSBs) plan that was announced by Union Finance Minister Arun Jaitley on Tuesday.

On the other hand, ICICI Bank (2.08%), Power Grid Corporation Of India (1.65%), State Bank Of India (1.25%), Asian Paints (0.96%), Bharti Airtel (0.96%), and Tata Consultancy Services (0.73%) were the biggest losers in the Sensex.

However, SBI, which zoomed 27.58 per cent yesterday, ended lower by 1.25 per cent.

Among secondary indices, the S&P BSE Mid-Cap index rose 0.25%and the S&P BSE Small-Cap index gained 0.49 per cent.

The 50-share NSE index Nifty also hit a historic high of 10,340.55 by climbing 132.85 points or 1.30 per cent. Both the indices outperformed the Sensex.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 3582.50 crore Wednesday, as per provisional data released by the stock exchanges.

European counters DAX and FTSE were trading higher by 0.27 per cent and 0.38 per cent, respectively, in the late morning trade.

Vanessa Coleman