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Metal companies lead Indian indexes to record high levels

European stock indexes

The blue-chip NSE Nifty 50 gained 0.91% to a new record high of 22,529.95, while the BSE Sensex gained 0.81% to hit an all-time high of 74,254.62

India’s benchmark indexes rose to record high levels on Monday, led by metal companies following upbeat data from China, while a moderation in a key U.S. inflation data also aided sentiment.

The blue-chip NSE Nifty 50 gained as much as 0.91% to a new record high of 22,529.95, while the BSE Sensex gained 0.81% to hit an all-time high of 74,254.62.

All 13 major sectors gained.

The latest U.S. inflation data was “along the lines of what we would like to see,” Fed Jerome Powell said, keeping alive hopes that the central bank will start reducing interest rates in June.

That, along with data showing the U.S. economy grew faster than previously estimated in Q4, helped boost sentiment, according to analysts.

Metal stocks climbed 2.2% after data showed China’s manufacturing activity grew for the first time in six months in March.

JSW Steel and Tata Steel advanced 3.5% and 2.3% and were the top gainers on the Nifty 50.

The undertone of the market is bullish, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services.

After consolidating in March, the Nifty has advanced more than 300 points in two sessions, suggesting upward momentum, he added.

Infosys added 2.1% after the software firm said that it expected a tax refund of 63.29 billion rupees, after receiving orders from the income tax department.

The U.S.-rate sensitive IT stocks, in general, added 0.6%.

The wider, more domestically focussed small- and mid-caps advanced 1.8% and 1.2%, respectively.

Steady domestic and foreign inflows, strong domestic macroeconomic data and hopes of policy continuity after national elections could further trigger a pre-election rally, said Deven Choksey, MD of DRChoksey FinServ.

However, he said, the markets are already priced to perfection, and elevated valuations could keep a cap on the gains.

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