A key development in the form of Moon Jae-in winning South Korean presidential elections removed an "overhang" from Asian stock markets, triggering in equities in the region, including in India where the BSE Sensex reclaimed the 30,000-mark.
At around 10.37 am, the 30-scrip index was up 246 points, or 0.82 percent, at 30,179 while the NSE Nifty was trading 67 points at 9,383. A few minutes later, the Sensex hit a fresh all-time high of 30,206.
The trigger was the forecast of higher monsoon rainfall this year than estimated earlier, according to comments attributed to the chief of the India Meteorological Department (IMD). This led to gains in FMCG and auto stocks.
Hindustan Unilever Ltd. (HUL), Bharti Airtel and Mahindra were leading the Sensex rally.
Hero Motocorp was flat at Rs 3,300 ahead of Q4 results due today. Bloomberg has projected net profit and revenues to fall 8.8 percent and 6.7 percent, respectively.
Top five developments on Indian stock markets:
1. Some of the stocks in the mid-cap space have rallied a lot, according to an analysis by Bloomberg.
Indian stocks above historical valuations highest in 15 years.https://t.co/xO0Tft7NwX pic.twitter.com/P9qLUuINWN
— BloombergQuint (@BloombergQuint) May 10, 2017
The mid-cap index on the NSE — CNX Mid-Cap — has rallied 27.2 percent since January 1, according to an update by brokerage Nirmal Bang Institutional Equities. In comparison, the BSE Sensex and NSE Nifty have appreciated 12.4 percent and 13.8 percent, respectively, for the corresponding period.
Stocks in the BSE Mid-cap index include ABB, Indian Bank, Marico, Gillette India, Bharat Forge, Indian Hotels Company, Petronet LNG, Ashok Leyland, LIC Housing Finance, Berger Paints, Sun TV Network and IDFC Bank.
2. Some of the stocks dominating investor interest include Godrej Consumer Products, Interglobe Aviation, HUDCO and Vijaya Bank.
3. Godrej had announced succession plan and upbeat Q4 results besides rewarding shareholders with 1:1 bonus issue. Interglobe Aviation had declared weak Q4 results on Tuesday.
4. HUDCO's initial public offering has received an overwhelming response from investors, resulting in oversubscription by two times by the close of the second day. The public issue closes on Thursday (May 11).
5. Interglobe Aviation is also eyeing the regional connectivity space "UDAAN".
IndiGo wants in on UDAN.@azmanusmani reportshttps://t.co/Z9hLMQuqxh
— BloombergQuint (@BloombergQuint) May 10, 2017