BSE Sensex and Nifty rose over 1 per cent today to set new all-time highs. Strong global markets, easing of global oil prices and expectations of reform measures in the Budget spurred a rally in Indian markets.
Brent crude, extending its decline, lost 12 cents to $112.17 a barrel. Brent crude had hit $115 a barrel last month as Iraq crisis flared up.
Finance Minister Arun Jaitley’s comment on Tuesday that “mindless populism” in policymaking needed to be checked stoked expectations of a pragmatic budget on July 10.
The rupee also rose to nearly 3-week high of 59.75 against the dollar, boosting the sentiment.
Sensex rose over 300 points nearly 280 points to an all-time high of 25,828, breaching its earlier high of 25,731. The 50-share Nifty jumped nearly 90 points to post a new high of 7,723.55. Analysts remain positive on Indian markets ahead of the Budget.
Metal stocks Sesa Sterlite, NMDC, JSPL and Tata Steel were up between 1.5 per cent and 2.7 per cent. Among the banks, Bank of Baroda, Kotak Mahindra Bank and ICICI Bank rose over 1 per cent. Oil & gas heavyweight Reliance Industries advanced nearly 1.5 per cent.
At 1:45 p.m., the Nifty was up 82 points to 7,717 while Sensex rose 287 points to 25,804.
In other global markets, Asian stocks were at a three-year peak on Wednesday after a round of upbeat global economic data whetted risk appetites and helped Wall Street taste all-time highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1 per cent to 499.15, ground not visited since May, 2011. Japan’s Nikkei added 0.3 percent and notched up its loftiest level in more than five months.
Most of the European markets were also in the green in early trade. Overnight, on the Wall Street, the Dow and S&P 500 had both scored record closing highs, as did the MSCI world equity index. The Dow gained 0.77 per cent and the S&P 500 0.67 per cent, while the Nasdaq put on 1.14 per cent.