BSE Sensex and Nifty surged to record highs after economic growth in the first quarter hit a nine-quarter high. Data released on Friday showed that economic growth in April-June quarter hit 5.7 per cent.
Boosted by the GDP growth numbers, Nifty hit 8,000 level for the first time while Sensex hit a new high of 26,900. At its day’s high, Nifty hit 8,035.
From 7,000 level, Nifty took 78 sessions to hit the 8,000 level. Nifty had hit 7,000 for the first time on May 12, boosted by the exit poll results.
Market expert Deven Choksey said that Sensex and Nifty have the potential of going up further if stocks oil & gas stocks like RIL and ONGC catch up with the market rally. Reforms in the oil & gas sector could be the trigger for these stocks, he added.
Technical analyst Sarvendra Srivastava said Nifty has resistance at the 8,050 and 8,100 zone.
Another market expert Ramesh Damani said the first leg of the rally since September last year was driven by foreign inflows into Indian markets while the next leg would be triggered by earnings growth as the economic growth improves. Commenting on the GDP growth numbers, Finance Minister Arun Jaitley on Saturday said he expects faster growth to come in subsequent quarters.