Sensex, Nifty Register Fresh Record Closing Highs; ITC Shares Jump 5%

Stock markets continued their gains to a sixth straight day, with BSE benchmark index Sensex closing 352 points higher at 37,336 on Friday. That marked the first ever closing above the 37,000 level by the 30-scrip BSE index. The NSE Nifty jumped 111 points, or 1 per cent, to settle at 11,278. With that, both key indices registered fresh record closing highs. Gains on Friday were led by buying witnessed in banking, FMCG and metal stocks. Top gainers on the 50-scrip Nifty index were ITC, Indian Oil, Tata Motors, Hindalco Industries and Titan, closing with advances of around 3-5 per cent each. ITC was the top gainer on both Sensex and Nifty, a day after the biggest cigarette maker in the country beat analysts' estimates of its net profit in April-June period.

The Nifty Bank - the NSE's sectoral index comprising banking stocks - closed 0.8 per cent higher at 27,634, also a record closing high. Punjab National Bank (PNB), ICICI Bank, Axis Bank and IDFC Bank shares rose around 2-3 per cent each.

Heavyweights Reliance Industries and ICICI Bank closed 1.6 per cent and 2.3 per cent higher, ahead of earnings announcements due later in the day.

The Nifty FMCG index closed with a gain of 2.4 per cent. The index was led higher by ITC shares, which settled more than 5 per cent higher after hitting a 52-week high in intraday trade.

Friday also marked the opening of the fresh derivatives series, a day after expiration of the July series. The markets will now turn focus on the Reserve Bank of India (RBI) policy statement slated for release on Wednesday, say analysts.

"Markets won't necessarily react negatively if there is a rate hike with positive commentary from RBI," news agency Reuters cited Anita Gandhi, whole-time director at Arihant Capital Markets, as saying. "With good monsoon (rains) and strong corporate results, expect the market to continue its bullish trend with upside of another 100/150 points on Nifty levels in the near term."

Bharti Airtel shares closed 1.3 per cent higher, after hitting a three-week high during the session. The telecom major had on Thursday posted a surprise profit for the June quarter.

Hindalco Industries shares rose 3.6 per cent. On Thursday, the company had confirmed acquisition of US aluminium processor Aleris Corp for $2.6 billion by its unit, Novelis. That helped the Nifty Metal close 1.9 per cent higher. Among other metal gainers were Jindal Steel, Tata Steel, JSW Steel and Hindustan Copper, finishing between 2.7 per cent and 4.6 per cent higher.