1. Four reasons why Sensex hit record high in the opening bell

Four reasons why Sensex hit record high in the opening bell

The benchmark Sensex today soared 235 points to hit an all-time high of 31,595 after quarterly corporate earnings optimism gave domestic institutional and retail investors much hope to go in for fresh bets.

By: | Updated: July 10, 2017 11:00 AM
After opening strong, the 30-share index rose further by 234.83 points, or 0.74%, to hit a new peak of 31,595.46.

Indian benchmark indices, Sensex and Nifty hit a record high in the opening trade on Monday. The domestic markets have been gaining traction on the back of smoother GST implementation, positive expectations from the Q2 corporate earnings and the strengthening of cross-border ties with Israel. The benchmark Sensex today soared 235 points to hit an all-time high of 31,595 after quarterly corporate earnings optimism gave domestic institutional and retail investors much hope to go in for fresh bets. After opening strong, the 30-share index rose further by 234.83 points, or 0.74%, to hit a new peak of 31,595.46, breaking its previous lifetime high (intra-day) of 31,522.87 reached on June 22.

On Friday’s’ closing the markets saw biggest weekly gain since late May, with Sensex soaring 439.02 points to finish at 31,360.63, while broader Nifty snapped its three-week losing streak, garnering 144.90 points to close 9,665.80.

All sectoral indices led by technology, IT, realty, PSU, healthcare and bank were in the green, gaining up to 1.58%. The data for the 50-share NSE Nifty, however, was not available as stock rates did not update due to a technical glitch. Covering-up of short positions helped lift the index too. A mixed trend at other Asian bourses following a rally on Wall Street on Friday on the back of forecast-busting US jobs data cheered investors here. Major gainers were Bharti Airtel, TCS, Lupin, Sun Pharma and Wipro, surging by up to 3.73%.

Here are the reasons why Sensex hit an all-time high today:

Earnings optimism

The upcoming quarterly results, along with macroeconomic data points and global cues, are expected to determine the trajectory of equity indices this week, market observers feel. According to analysts, investors’ risk-taking appetite might also strengthen on the back of the smooth rollout of the Goods and Services Tax (GST) and healthy progress of monsoon rains.

Smoother GST roll-out

The hassle-free implementation of the historic nationwide tax reform, GST supported the markets through the week. “After a smooth rollout of GST, the market is expected to look forward to Q1FY18 earnings, IIP (Index of Industrial Production), CPI (Consumer Price Index) and WPI (Wholesale Price Index) data,” said Vinod Nair, Head of Research, Geojit Financial Services.

Forex reserves at record high

The country’s forex reserves touched a new record high of USD 386.539 billion after it rose by USD 4.007 billion in the week to June 30, due to an increase in foreign currency assets (FCAs), the RBI said. Gold reserves also increased by USD 252.8 million to USD 20.348 billion. The special drawing rights with the International Monetary Fund (IMF) was up by USD 11.8 million to USD 1.479 billion. The country’s reserve position with the IMF, too, rose by USD 18.9 million to USD 2.322 billion.

Strengthening of Global ties

Narendra Modi’s maiden visit to Israel has brought positive sentiments among the investors, as the Prime Minister has clocked and locked deals and has firmed up economic ties with the technologically advanced and innovation-driven nation Israel. During the visit, Modi’s Israeli counterpart Benjamin Netanyahu announced the establishment of a $40 million innovation fund to promote technological cooperation between India and Israel which boosted the market.

  1. No Comments.

Go to Top