Sensex crosses 28,000
Speculation about RBI rate cut makes Sensex zoom
By : DC Correspondent
Update: 2014-11-06 01:12 GMT
MUMBAI: The equity markets surged to a record high on Wednesday with the Sensex crossing its key psychological milestone of 28,000 for the first time in its history after banking sector stocks rallied on hopes that the Reserve Bank of India (RBI) would slash interest rate in its next monetary policy meeting. After opening the day on a positive note, the Sensex hit an all time high of 28,010.39 in the intra-day trade. However, the Sensex failed to maintain its winning momentum at higher levels due to profit booking.
The Sensex finally closed the day at 27,915.88, gaining 55.50 points or 0.20 per cent. The Nifty ended the day at a new high of 8,338.30, up 14.15 points or 0.17 per cent.“Most of the macro factors are now turning in India’s favour. Inflation is coming down. Crude oil prices have dropped to a four-year low and global commodity prices are also seeing a sharp fall. All these are good from India’s perspective. Moreover, the rally is well supported by better than expected corporate earnings,” said Uday Kumar Dubey, vice-president, institutional desk, R.K. Global.
Mr Dubey pointed out that the Nifty has got a good support at 8,200 levels and the index is likely to hit 9,000 levels by January 2015. Among the sectoral indices, BSE bankex was the biggest gainer up 1.41 per cent. The shares of Axis Bank, SBI and IndusInd Bank gained 2.93 per cent, 2.24 per cent and 2 per cent respectively. According to the provisional data, FPIs purchased shares worth Rs 1,030.85 crore.