The Sensex and Nifty closed higher on Monday, extending gains from the previous week after Narendra Modi-led NDA stormed to victory in Lok Sabha polls. A rally in bluechip stocks including HDFC twins, ICICI Bank, L&T, Tata Steel, Titan, Axis Bank, SBI among others which hit a fresh 52-week high propelled the benchmark indices higher. The Sensex closed 249 points higher at 39,683.29 while the Nifty ended 80.65 points up at 11,924.75. Intra-day, the Sensex gained 400 points. This represents a fresh closing high for the Sensex. In case of Nifty, the level of 11,924.75 also represents a fresh peak. HDFC twins, L&T, SBI, Axis Bank and ICICI Bank together contributed to more than 250 points of Sensex’s gains. In the week gone by, the Sensex added a whopping 1,504 points in the week or about 3.9% buoyed by the sentiment around Modi s victory. The Nifty accumulated a robust 437 points in the previous week, or about 3.83%.
Private sector lenders ICICI Bank and Axis Bank jumped to a fresh record high of Rs 438.80 and 816.40 respectively, taking the overall gains in the last on year to more than 45% each. ICICI Bank shares have gained by 64% while Axis Bank shares have returned 117% in the last 5-year period. The Nifty Bank index is just kissing distance away from record high level, even as RBL (701.40), Federal Bank (Rs 108.35), SBI (Rs 364), HDFC Bank ( Rs 2,449.50), Kotak Mahindra Bank (Rs 1,555.90) trade within 0-2% range of their 52-week high levels.
Among the major losers were IndusInd Bank, RIL, Asian Paints, Bharti Airtel, ONGC, Maruti, Bajaj Auto, Tata Motors, Bajaj Finance, Coal India, Hero MotoCorp, Sun Pharma and Infosys ended in the red, shedding up to 2.37 per cent. The broader BSE midcap and smallcap indices outperformed benchmarks, ending up to 1.77 per cent higher.
Meanwhile, foreign institutional investors purchased equity worth Rs 2,026.33 crore on Friday, while domestic institutional investors sold shares to the tune of Rs 195.35 crore, provisional data available with stock exchanges showed. The domestic currency rupee depreciated marginally to 69.59 against the US dollar.