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HomeUncategorizedSensex, Nifty Hit Record Highs After Surpassing May 16 Peaks

Sensex, Nifty Hit Record Highs After Surpassing May 16 Peaks

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It was a record-setting day for Indian markets today. The BSE Sensex and Nifty on Friday set a new record by surpassing the previous high of May 16 when the Narendra Modi-led BJP won an overwhelming mandate in elections. The stock market indices also closed at record highs.
The Sensex today ended 376 points higher at 25,396 while Nifty closed at 7,583, up 109 points. This is also Nifty’s first-ever close above the 7500.

On May 16, Sensex and Nifty hit new highs of 25,375 and 7,563 respectively during the day but closed below those levels on profit-taking.
Indian markets are on a roll on hopes that the Modi-led government would take quick decision to put the economy back on track. The Nifty is up nearly 30 per cent since September 13, when Mr Modi was named as the BJP’s prime ministerial candidate.

The first test of the government’s intentions would be the budget, which is likely to be announced in early July. “There are no visible near-term negatives. Investors are building portfolios ahead of the Union Budget, which would be the next big event. FIIs (foreign institutional investors) continue to support. The undercurrent is still positive,” said Suresh Parmar, head of institutional equities at KJMC Capital Markets.

Indian stock markets have been supported by heavy overseas buying. According to Deutsche Bank, India has received an impressive $8 billion in equities and $7.7 billion in debt year-to-date.

Some market analysts remain cautiously optimistic after the sharp run-up in Indian markets. Market analyst Sanjeev Bhasin said there is a left-out feeling among some investors who missed the rally in stocks and are now chasing stocks. But investors should be cautious at current levels, he added.

Independent market analyst G Chokkalingam says investors should be cautious of the sharp gains in some midcap and smallcap stocks that have gained multiple times.

Upstream oil and gas companies led the gains today, with Oil and Natural Gas Corporation rising over 11 per cent and Reliance Industries advancing nearly 3 per cent. Reports citing sources said that the Narendra Modi government could hike gas prices by July 1. Among other oil & gas stocks, GAIL rose over 7 per cent.

Banking stocks were also among big gainers today. Kotak Mahindra Bank, PNB, and Bank of Baroda rose between 2-3 per cent.

Among losers, Infosys fell over 1 per cent, hurt another top executive exit on Thursday. Sesa Sterlite, which rose 6.5 per cent yesterday, fell 2.5 per cent to be the biggest Nifty loser today.

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