Stock market indices today scaled record highs on sharp fall in wholesale inflation, persistent foreign capital inflows and good bluechip earnings with benchmark Sensex rising 106.02 points to end at fresh closing peak of 28,046.66.
Similarly, buying mainly in realty, metal and refinery counters lifted the NSE Nifty index by 32.05 points, or 0.38 per cent, to end at new closing high of 8,389.90.
The wholesale price inflation dropped to a 5-year low of 1.77 per cent in October due to fall in food prices. The Wholesale Price Index (WPI) based inflation was at 2.38 per cent in September and 7.24 per cent in October 2013.
This data comes after easing of consumer price index.
“We expect that milder-than-expected inflation and low industrial growth are strong reasons to expect a 25-bp policy rate cut at the RBI’s coming 2nd December monetary policy meet,” said a Anand Rathi Institutional Research report.
Besides, data showing that Foreign Portfolio Investors (FPIs) buying shares worth a net Rs 690.61 crore yesterday, also gave a boost to the buying momentum.
“News flow both domestic and globally has been in favour of equity markets and that makes Indian markets one of the favourite destinations for the flow of risk investments,” said Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio.
In bluechip earnings, State-run State Bank of India posted 30.5 per cent growth in net profit at Rs 3,100.41 crore for the quarter ended September 30, pushing its shares up by 2.55 per cent.
The BSE Sensex resumed higher at 27,949.54 and shot up further to 28,093.23 before concluding at all-time closing high of 28,046.66, a gain of 106.02 points or 0.38 per cent.
The CNX 50-share Nifty also firmed up by 32.05 points or 0.38 per cent to all-time closing high of 8,389.90 after touching a high of 8,400.65.
Asian equities ended mixed as key indices in Hong Kong, Japan, Singapore and Taiwan moved up by 0.02 per cent to 0.56 per cent while China and South Korea moved down by 0.27 per cent to 0.78 per cent. European markets were also trading narrowly mixed as indices in Germany and UK declined by 0.13 per cent to 0.27 per cent while France CAC was quoting higher by 0.12 per cent.