Nifty50 hits record high on auto, banking boost; Zee soars nearly 25%

The NSE Nifty50 index was up 0.4 per cent at 17,424.4 after touching a peak at 17,438.55

India's blue-chip Nifty50 index hit a record high on Tuesday, boosted by automobile and banking stocks, while shares of Zee Entertainment surged nearly 25 per cent after top investors at the firm sought the removal of its chief executive from the board.

The NSE Nifty50 index was up 0.4 per cent at 17,424.4 by 10:28 am after touching a peak at 17,438.55. The S&P BSE Sensex gained 0.39% to 58,407.43.

Data showed on Monday that August retail inflation fell after food prices softened following an easing in supplies. The reading stayed within the Reserve Bank of India's 2 per cent to 6 per cent comfort range for a second month in a row.

The market seems to be driven by liquidity, said A K Prabhakar, head of research at IDBI Capital, adding that economic data like the inflation print was likely not having a big impact on investor sentiment

A subindex of auto stocks jumped as much as 0.9 per cent after local media reported that the Madras High Court in Tamil Nadu state said bumper-to-bumper insurance cover for new vehicles would not be mandatory.

Also Read — Sensex rises over 180 points at open on easing inflation, firm cues, Nifty above 17,400

Auto makers Eicher Motors and Hero MotoCorp were among the top percentage gainers on the Nifty 50 index, rising about 1.3 per cent to 1.6 per cent.

Banking stocks also rose as much as 0.8 per cent, snapping two straight sessions of losses.

Zee Entertainment Enterprises jumped after its top shareholders called a special shareholders meet to remove its Chief Executive Punit Goenka as director.

"In Zee's case, investors seem to be having their say... there is a move to make changes to the old management and that is likely being seen to be in shareholder interest," said IDBI Capital's Prabhakar.

Among market debutants on Tuesday, speciality chemicals maker AMI Organics soared 52.4 per cent, while healthcare chain Vijaya Diagnostic Centre advanced 10.6per cent.