The Sensex zoomed 315 points and ended at an all time high of 30,248. The broad-based Nifty 50 too rallied 90 points to close above 9400. Both indices thus surpassed their earlier highs of May 5.
The markets were buoyed by stocks of agriculture based companies after the India Meteorological Department (IMD) predicted a better-than-expected monsoon.
The agriculture-related stocks that gained the most include Chambal Fertilizers, Finolex Industries, National Fertilizers, Rashtriya Chemicals and Fertilizers and Zuari Agro Chemicals.
A good monsoon bodes well for India as a whole as more than two-third population of the country is dependent on agriculture based sectors.
The bourses were also on a bull run as the Asian stocks head upward for the third consecutive day. Strong corporate earnings too boosted the overall market sentiment.
“IMD’s bullish monsoon forecast eased concerns over El Nino weather conditions and added further legs to the ongoing rally. Earnings positivity has obviously been keeping markets buoyant and prospects of FII turning buyers in equities also kept markets push higher,” averred Anand James, Chief Market Strategist, Geojit Financial Services.
FMCG, Pharmaceutical, and automobile indices gained while the IT Index was down 50 basis points on news of massive layoffs announced by Infosys, Wipro and Cognizant.
HUL, HDFC and Bharti Airtel were the biggest gainers, while Asian Paints, along with IT behemoths TCS and Wipro were the biggest losers.
“IT and banking sector stocks currently traded with mixed sentiments due to profit booking at higher levels, while media-entertainment and power sector stocks complimented the firmness of the markets,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.