CHENNAI: The stock markets continued to shatter records driven by the ongoing rally, with the BSE Sensex pushing past the 31,000 points mark for the first time in history. The Nifty, too, crossed the 9,600 points mark for the first time during the trading day, but closed the day marginally lower.
Market analysts say that the recent boost is because of sustained buying by both foreign and domestic investors, who seem to be buoyed by the progress in the government’s economic reform agenda. The announcement of the GST rates has also boosted sentiment. At the end of the trading day on Friday, the Sensex stood at 31,028.21, up 278.18 points from the previous close. The Nifty settled at a record high of 9,595.10.
Coincidentally, Friday was the third year anniversary of the Narendra Modi-led NDA government at the Centre. The BSE Sensex has risen 25.53 per cent, while the NSE Nifty has gained 30.38 per cent since it came to power in May 2014. The predictions of a normal monsoon for the year, even as several regions grapple with drought, has also contributed to the surge.
“Positive sentiments on the Street can be attributed to an early and normal monsoon forecast. Things are improving on the macro front, with GST implementation on the horizon and with the bad asset resolution ordinance. GST is proposed to be implemented from 1 July. The tax reform is billed as the biggest the country has undertaken since independence,” said Vijay Singhania, Founder-Director, Trade Smart Online.
“Expectation on good monsoon and a slow pace in interest rate hike by US Fed continue to weigh on the sentiment,” added Vinod Nair, Head of Research, Geojit Financial Services.
The recent weeks have been extremely bullish for the country’s stock markets. It has taken the BSE Sensex just 21 sessions to jump from crossing the 30,000 points barrier on April 26 to crossing 31,000 points on Friday.