Diwali is here: Sensex closes at all-time high of 21033

Published: 30 Oct, 2013

 

Indian markets continued their romance with RBI governor Raghuram Rajan with both the Sensex and Nifty closing at record highs as the general bullish sentiment fuelled by the central bank’s actions yesterday extended today aided by the global cues.

Today’s rally was aided by a rally in global stocks on hopes that the US Federal Reserve will stay on course with its $85 billion monthly asset purchase programme at its two-day meeting ending today.

Exchange data showed a net purchase of Rs 1103 crore on Tuesday, bringing the total to nearly Rs 15000 crore during the period.

While the BSE Sensex closed up 104 points or 0.44 percent higher at 21033, the NSE Nifty closed 30 points higher at 6251. Bharti Airtel was the biggest Sensex gainer, up 6.2 percent after it announced its second quarter earnings. Other stocks leading the rally include ICICI Bank, Hindalco, Bhel and Dr Reddy’s Laboratories.

The Sensex  has closed above the 21,000 mark for the first time since November 2010. In fact it is just 184 points away from its intra-day high of 21206.77.

Even though the BSE Sensex  hit the 21,000 mark on many occasions in the past, it last closed above the mark only on 5 November.

“All dips and corrections will be used to buy because mid-caps and small-caps are going to fly now, ” said technical analyst Sudarshan Sukhani in an interview with CNBC-TV18. Angel Broking noted that the new high has been achieved without retail participation. “With their ( retail) participation, we would have been much much higher. The new high for the Sensex in the next 2-3 years can be 30,000″ said Rajan Shah of Angel Broking. Asian share markets took heart from record highs in US stocks on Wednesday as investors wagered the Federal Reserve would rock no boats at its policy meeting and leave stimulus in place for the next few months at least.

Domestically, the RBI’s liquidity loosening steps taken yesterday had instilled confidence among investors about the economy.

More than the repo rate hike, investors were relieved that the marginal standing facility rate was cut giving the banking system access to cheaper funds.

Source: FirstPost