Mumbai: Benchmark equity indices Sensex and Nifty recorded fresh highs on Wednesday morning, as hopes of a good monsoon and continued liquidity inflows kept investor sentiment upbeat.
At 10:38am, 30-share Sensex was up 0.82% at 30,180.42 points, while National Stock Exchange’s (NSE) 50-share Nifty climbed 0.72% to 9,383.50 points
Earlier in the day, Sensex gained as much as 0.88% or 264.41 points to 30,197.66 and Nifty gained 0.79% or 73.3 points to 9,390.15.
“We are getting into a good scene as far as economy is concerned. The hopes of good monsoon is a positive. The key positive development in the last few days is the NPA (non-performing assets) resolution ordinance,” Nirav Sheth, head of equities at SBICap Securities Ltd.
“All in all there is nothing negative to hamper the market sentiment,” added Sheth.
India is likely to receive above average monsoon rainfall as concern over the El Nino weather condition has eased in the past few weeks, the chief of the India Meteorological Department (IMD) said on Tuesday, raising prospects of higher farm and economic growth.
The IMD on 18 April forecast this year’s monsoon rains at 96% of a 50-year average of 89 cm.
Market breadth was positive with more than two shares advancing for every share that declined. Only two sectoral indices edged lower.
BSE Fast Moving Consumer Goods index and BSE industrials index led the gains, rising 1.79% and 0.92%, respectively.
Twenty-five of 30 Sensex stocks edged higher. Hindustan Unilever Ltd and Bharti Airtel Ltd led the gains with 4.12% and 2.78% rise respectively.