India Nifty hits record high for third straight session, boosted by metal stocks

India Nifty hits record high for third straight session, boosted by metal stocks


Domestic investors have so added $2.3bn to the market in February

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BENGALURU (Reuters) – India's benchmark Nifty 50 index hit a record hit for the third straight session on Wednesday, amid broad-based gains that were led by metal stocks.

The NSE Nifty 50 rose 0.24 per cent to an all-time high of 22,249.40. The S&P BSE Sensex was up 0.23pc at 73,221.01 as of 10:20 am IST.

The broader, more-domestically focussed Nifty Smallcap 100 and Nifty Midcap 100 rose 0.3pc each. In contrast, Asian stocks eased as diminishing expectations of early US interest rate cuts sapped risk appetite.

The Nifty is exhibiting great strength by rising for the seventh straight session, mainly aided by resilient buying by domestic institutional investors, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Domestic investors have been net buyers in 12 of the 14 sessions so far in February, adding stocks worth 193.37 billion rupees ($2.3 billion).

Metals (Nifty Met) jumped 1.9pc, led by a 3pc rise in aluminium maker Hindalco after the company's US subsidiary Novelis filed for a US initial public offering.

Read more: Companies listed at Bombay Stock Exchange are now valued over $4tr

Global metal prices climbed on hopes of a demand recovery in top producer and consumer China following its effort to boost its property sector, and supported by a weaker US dollar.

Hindalco, Tata Steel and JSW Steel were the top three Nifty 50 gainers, adding between 2pc and 3pc.
Public sector banks (Nifty PSU gained 1.6pc, while private banks (Nifty PVT) added 0.5pc.

"The fact that fairly valued large banks are now contributing to the rally is a positive signal, and it has the potential to sustain," added Vijayakumar.

Information technology stocks (Nifty IT) dropped 0.3pc on fading hopes of an early US rate cut.

Zee Entertainment tumbled 10pc on a report that the market regulator found accounting irregularities and after the broadcaster denied it was attempting to salvage its failed deal to merge with Sony India.