After Nifty, BSE Sensex on a high

MUMBAI: A day after the Nifty breached its key psychological barrier of 8,000 level, the BSE Sensex on Tuesday set another record by scaling above the 27,000 level mark for the first time in its history as India’s improving macro economic fundamentals coupled with falling global crude oil prices triggered broad based buying in the markets.

After hitting a life time high of 27,082.85 in the intra day trade, the Sensex finally ended the session at 27,019.39, gaining 151.84 points or  0.57 per cent. The Nifty gained 55.35 points or 0.69 per cent to end the trading session at 8,083.05 points.

“This was on cards for a long time,” noted Arun Kejriwal, director, Kejriwal Research and Investment Service (KRIS). “Our domestic growth has bottomed out and inflation has peaked out. Moreover, we have a stable government at the centre, which is expected to implement some bold policy measures over the next five years without any political intervention from other parties. These are the major drivers that are lending support to the ongoing rally. Going ahead, improvement in corporate earnings would help us in attracting fresh money from investors,” added Mr Kejriwal. According to the provisional data from the stock exchanges, foreign portfolio investors (FPI) purchased shares worth Rs 554.14 crores.

Vinod Nair, head of fundamental research at Geojit BNP Paribas Financial Services said that the government’s request before the Supreme Court to retain 46 coal blocks also boosted investors sentiment. According to him, any correction in the markets should be considered as an opportunity to add stocks into ones portfolio.

The broader market also remained strong with 1,738 stocks traded on BSE ending the day higher as compared to 1,250 stocks that declined.