Sensex crosses 32k, Nifty climbs to new high on rate cut hopes

ITC emerged as the top gainer by rising 3.03 per cent.

The Sensex went past the 32,000-mark for the first time ever soaring over 232 points and the NSE Nifty closed at a new peak 9,892 today as inflation touched a record low, offering the RBI leeway for a policy rate cut.

The index took 33 sessions to rise 1,000 points to breach the 32,000-mark.

Asian and European stocks were up after US Federal Reserve chief indicated a gradual approach to raising interest rates, triggering increased buying by investors.

Retail inflation hit a historically low level of 1.54 per cent in June and industrial output growth slumped to 1.7 per cent in May. The numbers came out after market hours on Wednesday.

The BSE 30-share Sensex settled at a new peak of 32,037.38, up 232.56 points, or 0.73 per cent.

The Sensex surpassed its previous record of 31,804.82 touched on Wednesday. In past four days, the index gained almost 676.75 points.

Similarly, the broader 50-issue NSE Nifty spurted by 75.60 points, or 0.77 per cent, to close at fresh lifetime high of 9,891.70, bettering its record of 9,816.10 hit on Wednesday.

ITC emerged as the top gainer by rising 3.03 per cent.

The largest IT exporter, TCS, rose 0.20 per cent ahead of its June quarterly earnings, due today.

Photograph: Danish Siddiqui/Reuters