Mumbai: Stirred up by positive global news, Indian market maintained strong upmove throughout the day before ending at record high levels. The Sensex ended up 164.91 points or 0.6 per cent at 28499.54 after hitting intra-day record high of 28542.
The Nifty closed up 52.80 points or 0.6 per cent at 8530.15, after touching intra-day record high of 8534.65. About 1346 shares have advanced, 1734 shares declined, and 116 shares are unchanged. China's unexpected rate cut by the central bank, first time in two years, boosted metal stocks as it currently consumes around half of the world's metals.
What added to the euphoria is hope of a stimulus as European Central Bank President Mario Draghi threw the door wide open for more drastic measures to prevent the euro zone from sliding into deflation, promising to use whatever means. Experts are still betting on India's outperformance.
Manishi Raychaudhuri, Asia Pacific Equity Strategist at BNP Paribas retains his overweight stance on Indian equities. However, he warns that India may consolidate at current levels having outperformed so sharply as valuations are becoming worrisome. Moreover, given the current scenario, the Reserve Bank of India may not cut rates on December 2, he adds.
Although India remains one of the best games in town amongst emerging markets (EMs), incremental outflows can be seen flowing into north Asia, specifically China and Korea in near-term, he says in an interview to CNBC-TV18.
Stock performance
Metals hogged limelight today with big gainers like Hindalco, Tata Steel and Sesa Sterlite. Banks, IT and capital goods also saw good buying interest. Both ICICI Bank and Infosys contributed over 60 per cent to Nifty gain. Lupin, Bajaj Auto, Infosys, ICICI Bank, HDFC Bank also hit record highs in today's trade.
Tata Power, another major gainer in the Sensex, was up 4.3 per cent. Oil and gas stocks were major laggards today with Reliance and ONGC falling per cent. Brent crude oil stabilised around $80 a barrel as world powers met in Vienna for the final day of talks on Iran's nuclear programme ahead of a key meeting of producer group OPEC to discuss production.
The Organization of the Petroleum Exporting Countries (OPEC) is considering how to respond to a collapse in oil prices and may decide to cut its output target when it meets on November 27. Fund managers say oil prices could plunge to $60 a barrel if the cartel fails to make significant cuts to reduce an oversupply on world markets.
Cipla, Sun Pharma, HUL and Bharti Airtel were among laggards in the Sensex.
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