Market benchmark BSE Sensex sprang back from early losses to close at a new lifetime high of 37,606.58 on Tuesday on late buying in RIL, HUL, Infosys and Hero MotoCorp, continuing its record run for the seventh straight day.
The broad-based NSE Nifty also continued its record-smashing streak for the fourth day by gaining 36.95 points or 0.33 per cent to settle at a fresh all-time high of 11,356.50.
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The 30-share Sensex closed at 37,606.58 points, up by 112.18 points, or 0.30 per cent, breaking its previous closing record of 37,494.40 hit on Monday.
Stock markets traded in the negative for most part of the session due to profit booking amid mixed trends in Asian markets after overnight losses on Wall Street.
Investors were cautious ahead of the RBI policy outcome, scheduled tomorrow, and preferred to book profits at record levels, brokers said.
Banking stocks bore the brunt as SBI, ICICI Bank and Axis Bank dropped up to 3.23 per cent.
However, a recovery in rupee, buying by domestic institutional investors, encouraging earnings by select blue-chips and stock specific buying helped the market get back on its feet, brokers said.
Vinod Nair, Head of Research, Geojit Financial Services Ltd said, “Caution ahead of tomorrow’s RBI & US FED policy led the indices to start on a weak note. However, strength in earnings supported the market to reverse from day’s low and ended up with a gain.”
Reliance Industries was the top gainer by climbing 3.14 per cent to close at record Rs 1,185.85 on BSE. RIL also regained its status as the country’s most valued firm by market capitalisation, replacing Tata Group’s TCS from the top slot.
Heromotocorp rose by 2.77 per cent followed by HUL that rose 2.52 per cent.
Adani Ports rose by 2.41 per cent, Tata Steel by 1.85 per cent, Bharti Airtel 1.53 per cent, IndusInd Bank by 1.44 per cent, and Maruti Suzuki 1.34 per cent.
Wipro gained 1.24 per cent, Asian Paints, 1.21 per cent, Bajaj Auto 1.19 per cent, Infosys 0.88 per cent, ONGC 0.85 per cent, Sun Pharma 0.61 per cent, L&T 0.52 per cent, Kotak Bank 0.33 per cent, HDFC Bank 0.17 per cent and M&M 0.13 per cent.
Shares of IT services firm Tech Mahindra ended higher 3.93 per cent to emerge as top gainer among Nifty stocks after the company on Tuesday reported 12.4 per cent rise in consolidated net profit for the first quarter ended June 2018.
In contrast, Axis Bank fall the most 3,23 per cent after after the private lender reported a 46 per cent drop in net profit for April-June quarter.
ICICI Bank fell more than 1 per cent after it said that provisions are expected to remain elevated in FY2019.
HDFC fell 1.64 per cent, SBI by 1.33 per cent, ITC by 1.30 per cent, Tata Motors 1.18 per cent and Vedanta 1.11 per cent on profit booking, restricting the rise in key indices.
Bank of India reported over 8 per cent rise in net profit to Rs 95.11 crore in the first quarter ended June 30, 2018-19. Share ended lower by 8.75 per cent to close at 94.35.
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On the BSE sectoral index chart, energy jumped the most by surging 1.89 per cent, followed by realty 1.10 per cent, consumer durables 1.01 per cent, capital goods 0.95 per cent, IT 0.81 per cent, FMCG 0.72 per cent, Teck 0.67 per cent, healthcare 0.59 per cent, oil & gas 0.48 per cent, metal 0.48 per cent, auto 0.45 per cent and power 0.06 per cent.
While finance, PSU and banking ended in the negative zone, falling up to 0.53 per cent.
The broader markets turned positive with mid-cap index rising 0.33 per cent and small-cap index by 0.26 per cent.
Globally, most Asian shares bounced back from early lows. Growth in China’s services industry in July moderated for the first time in five months.
Nikkei was up 0.04 per cent and Shanghai Composite index ended higher by 0.26 per cent, while Hong Kong’s Hang Seng was down 0.52 per cent.
European shares struggled for direction in early trading though earnings updates from oil major BP, big banking stocks and a host of smaller UK companies kept things interesting beneath the surface.
In Europe, Frankfurt’s DAX rose 0.18 per and France’s Paris CAC was up 0.20 per cent. London’s FTSE too up 0.54 per cent in their late morning trade.