Sensex crosses 50K, global cues, budgetary hopes power ascent (3rd Ld)
Mumbai, Jan 21 (IANS) Positive global cues and expectations of healthy quarterly results along with that of a supportive Union Budget FY22 powered the ascent of India’s barometer index — the S&P BSE Sensex — to cross the 50,000-mark on Thursday.
Coming a day after Joe Biden’s inauguration as US President, the BSE Sensex mirrored its Asian counterparts in having a gap-up opening.
In fact, the positivity sentiment led it to open above the 50,000-mark.
The gains of last the 5,000 points in Sensex has come in just 32 trading sessions.
Moreover, expectations of an even faster economic recovery on the back of the vaccination programme have been cited as other factors for the up-move.
Besides, easy liquidity conditions across the global have been funnelling into India’s market, as FIIs’ shore up their stakes and pump-up this rally.
Around 10.35 a.m., it was trading at 50,090.14, higher by 298.02 points or 0.60 per cent from its previous close of 49,792.12.
It opened at 50,096.57 and touched a fresh all-time high of 50,126.73 points.
The Nifty50 on the National Stock Exchange (NSE) also touched a new record high of 14,738.30 points. It was trading at 14,728.60, higher by 83.90 points or 0.57 per cent from its previous close.
Healthy buying was witnessed in auto and telecom stocks. A positive trend in the global markets also supported the indices on Thursday.
The top gainers on the Sensex were Bajaj Finance, Bajaj Finserv and HCL Technologies.
Further, rise in the shares of index-heavyweight Reliance Industries also lifted the Sensex. RIL shares were trading at Rs 2,077.50, higher by Rs 22.65 or 1.10 per cent from its previous close.
“Expectations of turnaround in the economy post Covid vaccinations and continued FPI inflows have led to this kind of gains for Indian markets in a globally low interest scenario,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Sensex touched the historical levels of 50,000 today for the first time ever. Indian markets have been witnessing strong momentum over the past few months on the hopes of a faster economic recovery after the pandemic lockdown. Also positive global cues, sustained FII inflows and strong corporate earnings kept the sentiments high.”
“Buzz around the upcoming Budget has also added strength to the markets. The Budget could potentially lay the foundation for a long term economic growth path.”
Besides, Likhita Chepa, Senior Research Analyst at CapitalVia Global Research said: “Since the March’2021 lows of Covid-19, there has been a one-way rally and the markets have grown almost 100 per cent from the March lows. Important events to watch out for are the earning announcements for Q3 and then the general budget from which the expectation is huge. So far, the results have been very good and in-line with the street expectations because of which, we have seen rally in IT and now we are seeing the same in banking as well.”
“On-time execution of vaccination programme and the expectations of reaching a conclusion on farmer’s protest are some of the reasons for which market is in a cheerful mode.”