The S&P BSE Sensex surpassed its previous record high of 38,989 registered on August 29 for the first time in history.
Bulls pushed S&P BSE Sensex above 39,000 for the first time to 39,115.57 while Nifty50 closed just below its record high of 11,760.20.
The S&P BSE Sensex surpassed its previous record high of 38,989 registered on August 29 for the first time in history. The gains were largely led by both private and public sector banks as well as Reliance Industries.
Late selling clipped gains which pushed Sensex below 39,000 and 11,700 for the Nifty50. A mixed trend was witnessed on sectoral front wherein metal and IT pack ended with decent gains.
If we look at the trend from previous record highs, banking stocks led the rally in S&P BSE Sensex from August 2018 as the top three stocks which rose over 10 percent were from the banking pack.
As many as 14 stocks from the S&P BSE Sensex gave positive returns up to 18 percent since previous record highs which include names like Axis Bank, ICICI Bank, HDFC Bank, Bajaj Auto, Asian Paints, and Reliance Industries Ltd, data showed.
But, no love lost for the bulls as experts feel that the journey of record highs are likely to continue and Nifty should be able to touch highs soon, and possibly surpass 12,000-13,000 levels in the next 12 months.
Liquidity flows in Indian markets, increase in prospects of political stability, rate cut expectation from RBI and improvement in GST collection in March are some of the factors which boosted sentiment.
“We started the day on a strong note but last hour profit booking prevented Nifty from hitting record highs, but we should be able to surpass 11760 levels soon. For FY20, the rally is likely to continue, and if the index is able to surpass 12000 then we could see 13500 levels in FY20,” Ritesh Ashar - Chief Strategy Officer - KIFS Trade Capital told Moneycontrol.
In terms of sectors, Ashar is of the view consumer durable as a sector should outperform, followed by cement and construction sector. “In the consumer durable segment, we are bullish on Blue Star and Bajaj Electric; in the cement sector we like Grasim and Heidelberg Cement, and in construction, we like IRB Infra,” he said.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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