Local indices end at record peaks on HDFC, IT gains

Mumbai: India's key stock benchmarks closed at record highs amid choppy trade on Wednesday, bucking the bearish mood in other Asian markets, as merger-bound HDFC Bank and HDFC, as well as software shares, paced the gains.

The Sensex hit an all-time high earlier in the day, but gains were capped as investors are wary of market reversals in the near-term. The index touched 63,588.31 on Wednesday - surpassing its previous high of 63,583.07 on December 1 - before closing at 63,523.15, up 195.45 points, or 0.31%, from the previous close.

It had hit a closing high of 63,384.58 last Friday. It took 136 trading sessions for the BSE benchmark to surpass its previous highs in absolute terms, as well as on a closing basis.


The Nifty was 12 points shy of its absolute all-time high of 18,887.60. The gauge of top 50 companies by market value did make a new closing high of 18,856.85, up 40.15 points, or 0.21%. The gauge surpassed Friday's closing high of 18,826.

"Critics no longer view India as a slow-moving elephant, but (see it more as) a fast-moving tiger. We have seen a steady improvement in our fundamentals vis-a-vis other global markets," said Nilesh Shah, managing director of Kotak Mahindra AMC.

FPIs Turn Net Buyers
"Investors need to have a disciplined asset allocation strategy and stay invested in the market," said Shah of Kotak Mahindra AMC. Every correction was being bought into when selling pressure intensified, he said. Consistent foreign and domestic fund flows, improvement in corporate earnings and attractive valuations have combined to lift the equity gauges to record highs. Both mid- and small-cap indices extended their winning streak for the ninth day in a row, marking fresh peaks.

On Wednesday, foreign portfolio investors (FPIs) turned net buyers after having sold stock through the previous two consecutive sessions. Overseas funds net purchased shares in the cash segment worth ₹4,013.10 crore. Brokers said part of the FPI flows could be because of buying by overseas funds in the Shriram Finance deal on the exchanges.

Domestic institutional investors also bought shares to the tune of ₹550.36 crore, showed provisional data from the stock exchanges.

Since the lows of March 2023, FPIs have bought shares worth ₹43,492.33 crore. This has helped benchmark indices climb 11% in the past three months.

Global Markets
Sentiment in Asia Pacific markets was weak, with most major indices ending in the red, dragged down by education and tech stocks that mimicked overnight losses on Wall Street.

European shares lost ground on the back of hotter-than-expected UK inflation data, which has put the Bank of England on course to raising interest rates more aggressively.