Sensex @ fresh record highs! Investors’ wealth rose nearly Rs 2 lakh crore on BSE

The S&P BSE Sensex climbed Mount 33K on Wednesday rallying over 400 points to hit a fresh record high of 33,117.33 supported by fresh buying and some bit of short coverings.

Stable global cues and big-bang reforms unleashed by the government on Tuesday to revive public sector banks and boost growth in Asia’s third-largest economy helped markets to breakout.

"Markets saw a drastic rally coming on the back of the public sector banking reform announced by the finance ministry last evening; this recapitalisation boost saw the public sector indices close up over 25 percent for the session,” Nikhil Kamath, Co-Founder and Head of Trading, Zerodha told Moneycontrol.

“This move also took away most of the shorts in the market, which were invariably stopped out in this move. FIIs continued to sell and we feel this could be a prudent level to initiate fresh shorts or stay away from entering fresh longs at this level,” he said.

The total market capitalisation of BSE-listed companies touched a new high of Rs 141.79 lakh crore on Wednesday, helped by strong gains in financials after the Indian government unveiled a massive Rs 2.11 lakh crore recapitalisation plan for public sector banks spread over two years.

Investor wealth of BSE-listed firms, measured by market capitalisation (m-cap), rose by 1.96 lakh crore on Wednesday to Rs 141.79 lakh crore compared to Rs 139.83 lakh crore recorded in the previous session, the BSE data shows.

The S&P BSE Sensex closed 435 points higher or 1.3 percent at 33,042.50. It hit a low of 32,804 and a record high of 33,117.33. The Nifty50 ended 87 points higher at 10,295. It hit a record high of 10,340.55 earlier in the session.

There was plenty of action in individual stocks in the mid and the smallcap space as more than 144 stocks hit a fresh 52-weeks high on the BSE and as many as 53 stocks rose a fresh record high.

However, the market breadth remained muted towards the close on NSE with 622 stocks advancing as against 905 declines while on the BSE it was 1160 advanced and 1532 declined.

Stocks which hit a fresh 52-week high on the BSE include names like Canara Bank, Jubilant FoodWorks, Century Textiles, Birla Corp, Godrej Properties, Saregama India, Bharti Airtel, Coromandel International, Tata Chemicals, Raymond etc. among others.

Financials led by PSU banks stole the show on D-Street as stock prices vaulted up to 46 percent. The S&P BSE PSU Index rose over 8 percent to hit a fresh record high of 9,405.36, helped by gains in stocks like State Bank of India, Punjab National Bank, Canara Bank which hit fresh 52-week high.

"Market has made all-time high after a long gap, with private banks and NBFC correcting as PSU BANK recap is having pressure on private financiers," AK Prabhakar, HoR, IDBI Capital told Moneycontrol News.

"We expect the market to rally till 11,000 on Nifty by December 2017 and 35,500 on the S&P BSE Sensex," he said.

General Insurance Corporation of India which made its debut on D-Street added over Rs70,000 crore to the overall market cap of the BSE listed firms.

In absolute terms, another five stocks which listed on bourse added nearly Rs 90,000 crore in market cap increase in the month of October alone.

SBI Life Insurance Company which listed on 3rd October added over Rs 66,000 crore in market cap, followed by Prataap Snacks which made its debut on D-Street on 5th October added Rs 2,720 crore in market cap.

Godrej Agrovent which listed on 16th October added over Rs10,000 crore in market cap, MAS Financial Services made its debut on the 18th October added Rs 3,500 crore to market cap, and Indian Energy Exchange added nearly Rs ,5000 crore in market cap.

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