Sensex rises for fifth session, closes at record high of 36,548

Nifty closes at 11,023.20 as it reclaims crucial 11000-level, with 75-point leap

Mumbai: Benchmark Sensex defied gravity for the fifth straight session to close at a fresh lifetime high of 36,548.41 on Thursday, as investors poured money into energy and financial shares, amid a robust start to the earnings season.

An appreciation in the rupee also helped the Sensex surpass its previous record closing of 36,283.25 hit on January 29, 2018.

The 30-share Sensex surged 282.48 points to end at 36,548.41, while the broader NSE Nifty reclaimed the crucial 11,000-level with a 75-point leap.

While the Sensex has now gained 973.86 points in five sessions, the Nifty ended at 11,023.20, up 74.90 points.

This is its highest closing since January 31, when it had ended at 11,027.70. Thursday was also the first time that the Nifty had breached the 11,000 mark after a gap of five months Reliance Industries spurted 4.42% to hit its all-time closing high, re-entering the $100 billion market cap club. The stock was the session’s biggest gainer on the benchmark Sensex.

Inflation at 5-month high in June

Retail inflation spiked to a five-month high of 5% in June on costlier fuel, despite easing food prices, reducing possibilities of an interest rate cut by the RBI in its upcoming monetary policy review.

Meanwhile, industrial production growth slipped to a seven-month low of 3.2% in May, mainly due to the sluggish performance of manufacturing and power sectors.

Risk factors to watch out for in next 6-12 months

Crude oil prices and fall in the rupee-dollar.
Rate hike by the US & RBI.
Outcome of state elections and 2019 general polls.
Global trade war fears.
Earnings growth below double-digit next fiscal.

Key reasons why markets rose on Thursday

Appreciation of rupee 
The rupee on Thursday surged by 20 paise to end at a one-week high of 68.57 against the US dollar. Rising dollar rates in the forex market also impacted the stock markets.

Optimism around earnings season 
Encouraging start to the corporate earnings season contributed to the uptrend.

Buying by foreign investors 
Provisional data with exchanges showed that foreign institutional investors sold scrips worth Rs742.63 crore, while the domestic institutional investors bought stocks worth Rs366.40 crore.

Fall in crude oil prices 
On Wednesday, crude oil prices fell between 5-6%. As a result, shares of oil marketing companies & airlines also rose.

China-US trade war talks 
The news that the US and China might start trade talks to resolve dispute also boosted the markets.

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