Sensex touches new highs on back of further reforms

Mumbai, Sep 6 :

Healthy buying by foreign investors, coupled with an overall expectation of further reforms propelled the Indian equities market to record highs in the week ended Sep 5.

“The long-term growth story of India is intact. Reforms are taking place which is arousing investor confidence, now the execution of those reforms need to be seen. There is a wide expectation of further reforms and the medium to long term story is positive,” Devendra Nevgi, chief executive of research firm Zyfin Advisors, told IANS.

“In the short-term there might be some volatility due to profit booking. Geo-political factors and inflation might also pose a risk. However, favourable crude oil prices and the European Central Bank’s decision to cut rates has helped channelise further funds into India,” he added.

The benchmark Sensex gained 1.45 percent in the week ended Sep 5 from its previous weekly close on Aug 28. The index closed at 27,026.70 points, while it ended trade at 26,638.11 points on Aug 28.

The market made gains or remained flat during the past ten trading sessions. It only made losses on Sep 4 and Sep 5.

The markets breached new psychological levels of 27,000-points in the Sensex and 8,000-points in Nifty during the week under review. The Sensex gained in five out of nine consecutive sessions.

On Sep 1, the 50-scrip Nifty of the National Stock Exchange (NSE) crossed the 8,000-mark for the first time and hit a record high of 8,035 points.

“Nifty movement next week will be stable, till the IIP (Index of Industrial Product) numbers come in by Sep 12. If the IIP numbers are as positive as the GDP numbers than it might zoom to 8,800 mark or if the markets are disappointed then it may come down to the 7,900 point where it will find support,” Kishor P. Ostwal, chairman and managing director, CNI Research, told IANS.

On Sep 2, the 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE)breached the 27,000-mark for the first time.

The FIIs had remained net buyers Friday. They bought shares worth $286.54 million, or Rs.1,732.29 crore, according to data with the National Securities Depository Limited (NSDL).

Week-wise, on Friday, the benchmark index of Indian equities markets closed trade at 27,026.70 points, down 59.23 points or 0.22 percent from the previous day’s close at 27,085.93 points.

On Thursday, the Sensex closed trade in the red as metal and capital goods stocks dipped. It closed the day’s trade at 27,085.93 points, down 54.01 points or 0.20 percent from the previous day’s close at 27,139.94 points.

On Wednesday, the index touched a new high of 27,225.85 points before closing trade at 27,139.94 points.

On Tuesday the markets breached the 27,000-mark for the first time to hit a record high of 27,082.85 points – surpassing its previous peak of 26,900.30 points scaled Sep 1.

The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 26,888.21 points, closed trade at 27,019.39 points.

On Monday, a benchmark index of Indian equities markets hit a record high of 26,900.30 points before closing the day’s trade at 26,867.55 points, up 229.44 points or 0.86 percent from the previous day’s close at 26,638.11 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) crossed the 8,000-mark for the first time and hit a record high of 8,035 before closing at 8,027.70 points — 73.35 points or 0.92 percent up from its previous close.

The major Sensex gainers on Friday were: Bajaj Auto, up 1.46 percent at Rs.2,335.20; Larsen and Toubro (L&T), up 1.27 percent at Rs.1,609.25; ONGC, up 1.12 percent at Rs.442.50; State Bank of India (SBI), up 1.10 percent at Rs.2,515.40; and Cipla, up 1.00 percent at Rs.557.30.

The losers were: Hero MotoCorp, down 2.16 percent at Rs.2,764.95; HDFC, down 2.10 percent at Rs.1,057.50; Coal India, down 1.80 percent at Rs.371.25; BHEL, down 1.50 percent at Rs.223.60; and ICICI Bank, down 1.46 percent at Rs.1,548.35.

(IANS)