MUMBAI: India’s benchmark Nifty 50 index scaled record highs on Friday in a broad-based rally led by financials, metals, and automobile stocks on prospects of a strong earnings growth in the December quarter.
The Nifty 50 hit a record high of 26,340 before ending up 0.7 percent at an all-time closing high level of 26,328.55. The BSE Sensex added 0.67 percent to 85,762.01. For the week, the indexes gained 1.1 percent and 0.9 percent, respectively.
India’s stock market scaled new heights on a day when shares in Europe and the U.K. too marked record levels in a positive start to trading in the New Year.
Fourteen of the 16 major sectors rose this week, with sub-indexes for banks, metals and automobile stocks hitting record highs too. The broader small-caps and mid-caps added 0.8 percent and 1.7 percent.
“We saw benchmarks struggle to sustain near record high levels in November and early December. Whether they hold on to these levels this time will be determined by quarterly earnings and the Union Budget,” said Kranthi Bathini, director of equity strategy at WealthMills Securities.
Heavyweight bank stocks rose 1.9 percent for the week on optimism over strong loan growth and asset quality.