Sensex, Nifty surge to fresh record highs led by banks

The Indian equity benchmarks rose to fresh record highs on Friday mirroring solid gains in global markets after US Federal Reserve surprised the global markets with a bigger than expected rate cut 50 basis points. The Sensex rose as much as 1,437 points or 1.72 per cent to hit an intraday high of 84,622.11 and Nifty 50 index climbed as much as 415 points to hit an all-time high of 25,831.35.

The Sensex ended 1,359.51 points higher 84,544 and Nifty 50 index jumped 375 points or 1.48 per cent to settle at 25,790.

Emerging market stocks and currencies were set for their biggest advance in around five weeks, buoyed by enthusiasm around a wider-than-usual interest rate cut by the US Federal Reserve that prompted an investor rush towards risk assets.

The MSCI index for EM stocks rose 0.7 per cent to touch a near one-month high during the day, set for its steepest weekly gain since August 12.

Back home, buying was visible across sectors as all the 13 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Realty index's 3.7 per cent gain. Nifty Bank, Auto, Financial Services, FMCG, Metal, Private Bank and Healthcare indices also rose between 1-2 per cent.

Mid- and small-cap shares also participated in the rally as Nifty Midcap 100 index rose 1.55 per cent and Nifty Smallcap 100 index climbed 1.10 per cent.

Mahindra & Mahindra was top Nifty gainer, the stock rose 5.32 per cent to close at Rs 2,946. ICICI Bank , JSW Steel , Larsen & Toubro, Coal India, Bharti Airtel, Eicher Motors, Adani Ports, Bharat Petroleum and Nestle India also rose between 2.3-4.5 per cent.

On the flipside, Grasim Industries, State Bank of India, NTPC, IndusInd Bank, Hero MotoCorp and TCS were among the notable losers.

The overall market breadth was positive as 2,466 shares ended higher while 1,484 closed lower on the BSE.

(With Reuters inputs)