Sensex, Nifty reach new peaks; banking, CG stocks lead rally

Extending gains for fifth straight week, stock specific actions sparked by a smart rally in banking and capital goods sector lifted both benchmark indices, Sensex and Nifty, by over one per cent to conclude the week at new record highs.

The week started on a record-breaking mode on the back of positive cues such as the declining trade deficit data for October.

Recent macroeconomic data has reaffirmed investors' view that the Indian economy is on track for a smart recovery at a time when Japan has slipped into recession, say traders.

Continued fall in the global crude oil prices augurs well for price rise in India, which imports over 70 per cent of its oil requirements.

It, however, immediately fell back in the next two days as lack of cues from domestic and global front kept the participants on the sidelines and triggered profit-taking in selective pivots.

Fall in the rupee value to 62-level against the US dollar also weighed on the market sentiment.

Later, it recovered in the last two sessions of the week on hopes of big-bang reforms in upcoming Winter Session of Parliament.

Positive global cues after US shares provided another record-breaking lead on the back of encouraging economic data also boosted the market outlook.

The benchmark S&P BSE Sensex resumed lower at 28,018.68 but dipped to a low of 27,915.23 before recovering to log its lifetime high of 28,360.66.

It also registered a new closing peak of 28,334.63, showing a gain of 287.97 points, or 1.03 per cent.