Sensex Hits Record High Above 28,800

Indian stock markets hit record highs on Thursday with the Sensex rising over 350 points and the Nifty gaining over 85 points in early trade. The Sensex made a new high of 28,822, while the Nifty hit an all-time high of 8,626.95 in opening trade, but the momentum weakened soon after.

Thursday’s gains were led by ITC, India’s biggest cigarette maker, which jumped over 5 per cent to top the 50-share Nifty benchmark. Other tobacco companies such as Godfrey Phillips and VST Industries also saw strong buying interest on reports that the government may not ban the sale of loose cigarettes, which account for 65 to 70 per cent of total cigarette sales in India.

Private lender ICICI Bank was the other big gainer today, rising over 1.5 per cent on 1:5 stock split. Realty stocks also gained after the government on Wednesday eased foreign direct investment rules for the construction sector. The move will help attract more money into the country to build new hotels, housing and townships, analysts say.

Noticeable losers include Steel Authority of India, the state-run firm in which the government will divest a 5 per cent stake through Offer for Sale(OFS) route on Friday. The floor price for the issue will be declared post market hours today. Post this stake sale government’s holding in the company will come down to 75 per cent. The stock fell more than 3 per cent in morning trade.

Source:ndtvprofit