Riding on rally in IT, Reliance, HDFC bank stocks, indices reach record high

Mumbai: Benchmark Sensex closed above the 73,000 level for the first time while broader Nifty scaled the 22,000-point peak on Monday as key stock indices stayed on the record-breaking run powered by a rally in IT shares, Reliance and HDFC Bank.

Rising for the fifth day in a row, the 30-share BSE Sensex jumped 759.49 points or 1.05 per cent to settle at a lifetime closing high of 73,327.94. During the day, it rallied 833.71 points or 1.14 per cent to hit an all-time intra-day peak of 73,402.16.

The Nifty climbed 202.90 points or 0.93 per cent to settle at a new closing high of 22,097.45. During the day, it zoomed 221 points or 1 per cent to reach a lifetime intra-day high of 22,115.55.

A strong rally in IT shares Infosys, TCS, Wipro and HCL Tech after better than expected Q3 results helped the indices scale new record high levels. Oil & gas and energy sector shares also boosted the rally.

Among the Sensex firms, Wipro jumped over 6 per cent after the IT company's December quarter earnings beat estimates.

The other prominent gainers were HCL Technologies, HDFC Bank, Infosys, Tech Mahindra, Bharti Airtel and Reliance Industries.

HCL Technologies on Friday reported a 6.2 per cent increase in consolidated net profit at Rs 4,350 crore, highest ever on a quarterly basis, in the three months ended December 2023 on the back of growth in both services and software businesses.

Bajaj Finance, Bajaj Finserv, Larsen & Toubro, Tata Motors, Tata Steel and Axis Bank were among the laggards.

In Asian markets, Seoul, Tokyo and Shanghai settled in the green while Hong Kong ended marginally lower. European markets were trading mostly lower. The US markets ended on a muted note on Friday.

Foreign institutional investors (FIIs) offloaded equities worth Rs 340.05 crore on Friday, according to exchange data.

The BSE benchmark zoomed 847.27 points or 1.18 per cent to settle at 72,568.45 on Friday. The Nifty climbed 247.35 points or 1.14 per cent to settle at 21,894.55..

Rupee gains

Mumbai: The rupee strengthened for the ninth consecutive session to settle with a gain of 6 paise to 82.89 (provisional) against the US dollar on Monday, driven by a rally in the domestic equity markets.

At the interbank foreign exchange, the local currency opened at 82.82 and traded between 82.77 and 82.91 against the greenback during intra-day deals.

The unit finally settled at 82.89 (provisional) against the dollar, registering a gain of 6 paise over its previous close amid a bullish trend in domestic equities, wherein benchmark indices climbed to lifetime highs.

On Friday, the rupee settled with a gain of 6 paise to 82.95 against the US dollar.

In the last nine trading sessions, the local unit added 48 paise since the level of 83.32 against the dollar recorded on January 2.

Meanwhile, WPI rose 0.73 per cent year-on-year in December 2023 against 0.26 per cent in the previous month, but lower than the forecast of 0.9 per cent.

According to official data, the wholesale price index (WPI)-based inflation rose in December at 0.73 per cent mainly due to a sharp rise in food prices.

The WPI inflation was in the negative zone from April to October and had turned positive in November at 0.26 per cent.

"We expect the rupee to trade with a slight positive bias on the weak US Dollar and positive global markets. Expectations of fresh inflows from foreign investors may also support the rupee," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.

However, a surge in global crude oil prices and the escalation of geopolitical tensions in the Middle East may cap sharp gains. Traders may remain cautious ahead of India's trade balance data. USD/INR spot price is expected to trade in a range of Rs 82.50 to Rs 83.20, Choudhary added.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09 per cent higher at 102.49.

On the domestic macroeconomic front, retail inflation soared to a four-month high of 5.69 per cent in December, while industrial production fell to an eight-month low of 2.4 per cent in November, according to a set of government data released on Friday.

Brent crude down

Crude oil prices on Monday grew Rs 9 to Rs 6,042 per barrel in futures trade as participants widened their positions following a firm spot demand.

On the Multi Commodity Exchange, crude oil for January delivery traded higher by Rs 9, or 0.15 per cent, at Rs 6,042 per barrel in 9,887 lots.

Analysts said raising of bets by participants kept crude oil prices higher in futures trade.

Globally, West Texas Intermediate crude oil was up by 0.18 per cent to USD 72.81 per barrel, and Brent crude futures, the global oil benchmark, slipped 0.66 per cent to $ 77.77 per barrel.

Gold, Silver shine

Gold prices rose Rs 150 to Rs 63,550 per 10 grams in the national capital on Monday amid strong cues in the overseas markets, according to HDFC Securities.

In the previous trade, the precious metal settled at Rs 63,400 per 10 grams.

Silver also jumped Rs 300 to Rs 76,700 per kilogram, while it had closed at Rs 76,400 per kg in the previous close.

"Spot gold prices (24 carats) in the Delhi markets are trading at Rs 63,550/10 grams, up by Rs 150, tracking positive cues from overseas markets," Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.

In the international markets, gold and silver were quoting higher at USD 2,055 per ounce and USD 23.20 per ounce, respectively.

Gold prices resumed trading on a positive note, supported by haven demand, due to weak US producer price index (PPI) data and geopolitical tensions in the Middle East which have increased the expectations of interest rate cuts by the Federal Reserve at its meeting in March, Gandhi added.