Mumbai: The equity markets on Tuesday soared to a record high with the broader 50-share Nifty testing its all-time high for the fourth time in last five trading session as reports about above average monsoon forecast for this year triggered fresh buying in index heavyweights.
The Nifty scaled above the psychological 9,500 level mark for the first time and ended the session at 9,512.25, up 66.85 points or 0.71 per cent. The 30-share BSE Sensex rallied 260.48 points or 0.86 per cent to end the trading session at 30,582.60.
“The month of May used to be associated with the phrase “sell in May and go away on vacation”. This time around that saying has been proven wrong. The reasons for increased buying interest seems to be coming from better than expected result season and predictions of normal monsoon. The uncertainties on global landscape have also been receding. The core of the rural recovery theme was built around expectation of a good monsoon this year. The sector rotation play continues with bellwether stocks from the consumer goods sector, which would benefit from this recovery giving leadership to the market,” said Kunj Bansal, ED and CIO, equity at Centrum Wealth Management.
“Market sentiment got an additional boost after reports indicated that the retirement fund manager, EPFO is likely to invest at least `18,000 crore in the Indian equity markets, over the course of the current fiscal. Such a large influx of funds can potentially drive both stock prices as well as stock valuations higher,” said Karthikraj Lakshmanan, senior fund Manager, BNP Paribas Mutual Fund.
The broader markets however remained subdued mainly on account of stretched valuations in many of the small and mid cap stocks.