Ends above 25,000 mark for the first time
Indian markets are gung ho at the meteorological department’s prediction that the monsoons may hit Kerala within the next 48 hours, which is essentially a manifestation of the continued optimism over the revival of the domestic economy. A timely and good monsoon would also help dispel fears of the dreaded El Nino playing havoc with farm production and leading to a further spike in inflation.
The Sensex took the cue and closed at its highest level ever at 25019.51 points, rising 213 points through the day. For the second time since Narendra Modi came to power the BSE Sensex has crossed 25,000 points while the Nifty ended the day at 7474.10, up 0.97 percent and on its way to the 7500 mark. Fifteen of the 50 Nifty stocks were trading at 52-week highs. According to analysts, the sentiment may continue until the government unveils its budget in mid July.
Persistent capital inflows from foreign funds into equity market and widespread buying by retail investors boosted the market sentiment, said traders. Overseas investors had bought Indian shares worth $32.25 million on Wednesday, in a third straight session of buying. “We may see Sensex levels at 30,000 before budget,” said Motilal Oswal, CMD, Motilal Oswal Financial Services.
‘‘There are no visible near-term negatives. Investors are building portfolios ahead of the union budget, which would be the next big event. FIIs continue to support. The undercurrent is still positive,” Suresh Parmar, head of institutional equities at KJMC Capital Markets, told a wire agency.
Finance Minister Arun Jaitley will meet captains of Indian industry on Friday to elicit their views on the budget. As part of the pre-Budget exercise, Jaitley has already met agriculturists and will meet representatives of social sector later in the evening.
Oil and gas stocks surged reacting to reports that the oil ministry may consult the Prime Minister’s Office for raising prices of liquefied petroleum gas and kerosene. Among oil and gas firms, Reliance Industries Ltd gained 1.2 percent while Oil India Ltd rose 2.02 percent. Oil and Natural Gas Corp. closed 1.98 percent higher.