Indian benchmark indices opened on a strong positive note today and touched new lifetime highs. BSE Sensex opened up 0.29% at 30018.96 points and touched a life-time high of 30197.66 points. The broader CNX Nifty50 opened up 0.33% at 9,347.95 points and touched a life-time high of 9390.15 points.
Here are five reasons for the spectacular show by the benchmark indices:
The Indian Meteorological Department (IMD) yesterday said the monsoon this year could be ‘normal’ and bring 100 per cent rainfall instead of 96 per cent it predicted earlier, which is expected to give a booster dose to the rural economy. The monsoon delivers about 70% of India’s annual rainfall, critical for growing crops such as rice, cane, corn, cotton and soybeans because nearly half of the country’s farmland lacks irrigation. India defines average, or normal, rainfall as between 96% and 104% of the 50-year average.
Foreign Institutional Investors
Sentiments got a leg up after data showed that foreign funds, which were largely net sellers on the Indian bourses for some time, made fresh purchases in yesterday’s trade.
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All the sectoral indices were trading higher in early trade with the rally being led by FMCG, metal, consumer durables, oil & gas and power stocks.
Other Asian markets were trading higher following an overnight positive lead from European and US markets. Among other Asian markets, Hong Kong’s Hang Sang was up 0.64 per cent while Japan’s Nikkei gained 0.30 per cent in early trade. Shanghai Composite Index too was up 0.18 per cent.
Hindustan Unilever was up 4.5% at Rs 995 after a global brokerage firm upgraded shares of parent company Unilever PLC. Unilever PLC holds over 65 per cent equity in the FMCG major HUL.