Mumbai: Rate cut hopes lifted markets to records on Wednesday as the Sensex surged 111 points to 32,687 and Nifty hit a life high of 10,138, with interest-sensitive stocks hogging the limelight ahead of RBI policy outcome.
The rate-setting MPC is due to announce its decision on Wednesday. A slew of strong corporate earnings provided more cheer. Moreover, positive leads from Asian markets following the Dow’s fifth straight record close amid better-than-expected corporate results bolstered sentiment.
The 30-share Sensex spurted by 111.31 points, or 0.34 per cent, to hit a new peak of 32,686.48, breaking its previous intra-day record of 32,672.66 hit on July 27. The gauge had gained 265.29 points in the past two sessions.
Sectoral indices, led by bank, auto, realty, power, consumer durables, IT and PSU, were trading in the positive zone with gains of up to 0.70 per cent.
The 50-share NSE Nifty too advanced 23.20 points, or 0.22 per cent, to scale life-time high of 10.137.85. The barometer had touched an intra-day high of 10,128.60 on Tuesday.
Traders said the widening of bets by investors and funds on expectations that the Reserve Bank might lower key interest rates at its bi-monthly monetary policy review, to be released later in the day, gave buying more push.
Top performers were NTPC, Hero MotoCorp, Lupin, Reliance Industries and Bharti Airtel, rising by up to 2.40 per cent. Unabated buying by domestic institutional investors (DIIs) helped the key indices scale record hits, they said.
The US Dow Jones Industrial Average closed at new record by rising 0.33 per cent on Tuesday.