Domestic stock markets rallied for the fifth consecutive day on Thursday, thanks to upbeat investor sentiments and positive global cues. While Sensex hit a lifetime high of 36,699.53 intraday surpassing its previous high of 36,444 recorded on January 29, 2018, the broader Nifty50 index crossed the 11,000 mark after a gap of five months and is just 100-150 points shy of its record high.
RIL, the index heavyweight was the major contributor to the rally in Sensex as it hit a record high of Rs 1,090 on the BSE. The Mukesh Ambani-led company crossed $100 billion market cap and became the second Indian company to cross the milestone after TCS. Hopes of better-than-expected earnings for the June quarter has boosted the investor sentiments. Tech giant Tata Consultancy Services (TCS) already fired on all cylinders in first-quarter earnings on Tuesday.
Oil refining and marketing companies – HPCL, BPCL and IOC posted big gains rallying up to 6% as global benchmark Brent crude oil marked its biggest one-day drop in two years on Wednesday.
Global stocks also moved north on Thursday shrugging off trade worries. Stock markets from Sydney to Hong Kong climbed alongside US and UK equity futures, paring some of Wednesday’s losses that were impelled by Trump’s aggressive trade stance, which was seen to deteriorate the growth outlook. Chinese stocks put up an excellent show.
Back home, traders are awaiting CPI inflation and IIP data due to be released later in the day. There are expectations that retail inflation rose to a near two-year high in June, driven by surging oil and food prices. Meanwhile, the Indian rupee strengthened against the US dollar on Thursday, tracking gains in the equity market. At 2.01pm, the rupee was trading at 68.54 a dollar, up 0.34% from its Wednesday’s close of 68.77.