Projection of India’s healthy economic growth outlook, along with bullish global cues lifted the key Indian equity indices to their new highs during the morning trade session on Tuesday.
Accordingly, the S&P BSE Sensex and the NSE Nifty50 breached their previous respective intra-day high levels.
In the process, the barometer Sensex crossed the 36,000-points-mark and the NSE Nifty50 climbed above 11,000 points.
Market analysts pointed-out other factors such as positive Q3 results, fresh inflows of foreign funds and buying support in metals, oil and gas, IT, banking and consumer durables stocks that aided the key indices’ upward trajectory.
At 10.30 a.m., the 30-scrip S&P BSE Sensex, which had closed at 35,798.01 points on Monday, traded higher at 36,019.40 points, up by 221.39 points or 0.62 per cent.
The Sensex touched a high of 36,051.86 points and a low of 35,863.98 during the intra-day trade so far.
The BSE market breadth was bullish — 1,516 advances and 889 declines.
At the National Stock Exchange (NSE), the broader Nifty50 quoted at 11,046.50 points, up by 80.30 points or 0.73 per cent.
Dhruv Desai, Director and Chief Operating Officer of Tradebulls told IANS: “Indian shares open at record Tuesday as investors received a boost from International Monetary Fund’s projection that India could emerge as the fastest-growing country in the world in 2018 at 7.4 per cent amid optimism over Prime Minister Narendra Modi’s address to the World Economic Forum.”
“Also investors’ expectation from the Union Budget, that is due next week, helped market to reach new highs.”
According to Deepak Jasani, Head – Retail Research, HDFC Securities, Nifty which touched 11,000 points in the early trade on Tuesday gained the last 1,000 points in about six months.
“The Sensex rose to touch 36,000 mark today gaining the last 1,000 points in four days,” Jasani told IANS.
“The bull run in the equity markets continue in India. The turnaround in the industrial growth in October 2017, along with big policy announcements related to Bank recap and Bharatmala led to a good up move in October 2017.”
“In January 2018, we are witnessing FIIs returning to the buy side in a big way after a break. The forthcoming Budget could aid in determining the future direction of markets from hereon,” Jasani said.
On Monday, the equity indices closed on record high levels on the back of upbeat quarterly corporate earnings, along with appreciable influx of foreign funds and healthy buying in IT stocks.
Consequently, the wider Nifty50 closed higher by 71.50 points or 0.66 per cent at a new level of 10,966.20 points.
Similarly, the Sensex closed at a fresh high level of 35,798.01 points — up 286.43 points or 0.81 per cent — from its previous session’s close.