SENSEX @ 30000
INDICES REACH NEW PEAKS
Markets raced past milestones on a record-setting spree today, with the benchmark Sensex closing above the 30,000-mark for the first time, while the broader Nifty hit a new peak, buoyed by unabated funds inflows and a global rally. Stocks saw frenzied buying, in line with global shares, which have been on a high after the first round victory of centrist Emmanuel Macron in French presidential elections. Investors are also keeping an eye on US President Donald Trump's much-awaited tax reforms. Traders said the impressive show by the ruling BJP in Delhi civic polls added to the positivity. The BSE 30-share Sensex opened on a strong footing and surged to a lifetime high of 30,167.09 points in intra-day trade, before settling at 30,133.35, up 190.11 points, or 0.63 per cent. This surpassed its previous record close of 29,974.24, reached on April 5. The gauge had hit its previous intra-day high of 30,024.74 on March 4, 2015. The Sensex has gained 768.05 points or 2.62 per cent in three days. Similarly, the broader 50-issue NSE Nifty scaled a new high of 9,367 before finally settling 45.25 points, or 0.49 per cent higher at 9,351.85, a new record closing. Its previous closing high of 9,306.60 was hit in yesterday's trade. It also broke the previous intra-day record of 9,309.20. "Market has made a higher high on account of rising global optimism due to ease in political risk in Eurozone and expectation of tax reform in the US. "Volatility emerged during the late hours due to profit booking but short covering ahead the expiry navigated the direction back to north. Optimism on earnings and continued buying by local investors is directing the recent rally in the market," said Vinod Nair, Head of Research, Geojit Financial Services. The rupee strengthened past the 64-mark to a near 21- month high of 63.93 (intra-day) against the dollar, which added to the momentum.
Meanwhile, foreign portfolio investors (FPIs) and domestic institutional investors bought shares worth a net Rs 178.82 crore and Rs 998.26 crore respectively yesterday, as per provisional data from the stock exchanges. Overseas, Asian indices ended higher following overnight rally in US stocks on strong earnings announcements and expectations surrounding US President Donald Trump's impending tax reforms. Tokyo's Nikkei ended up 1.1 per cent, while Hong Kong's Hang Seng rose 0.5 per cent, its fifth straight day of gains. Shanghai Composite Index edged up 0.2 per cent. Key indices in Europe, however, were mixed in their morning deals, with Paris CAC 40 rising 0.1 per cent, London's FTSE slipping 0.06 per cent and and Frankfurt's DAX 30 declining 0.03 per cent. Back home, of the 30-share Sensex pack, 18 scrips ended higher while 12 closed lower. Major gainers were ITC 3.36 per cent, M&M 3.29 per cent, HDFC 2.36 per cent, HUL 1.78 per cent, ICICI Bank 1.61 per cent, Tata Motors 1.17 per cent, Bharti Airtel 1.14 per cent, Maruti 0.88 per cent, HDFC Bank 0.73 per cent and Asian Paints 0.73 per cent. However, Adani Ports fell 2.31 per cent, Infosys 1.61 per cent, Dr Reddy's 1.31 per cent, Power Grid 1.30 per cent, Reliance 1.13 per cent, Wipro 0.80 per cent and ONGC 0.66 per cent. Among BSE sectoral and industry indices, FMCG rose 2.04 per cent, auto 1.01 per cent, bankex 0.82 per cent, finance 0.74 per cent and metal 0.47 per cent. However, realty fell 2.95 per cent, energy 1.13 per cent, IT 1.08 per cent, oil&gas 1.02 per cent, teck 0.89 per cent, power 0.77 per cent, utilities 0.76 per cent, consumer durables 0.61 per cent and healthcare 0.58 per cent. The market breadth turned negative as 1,954 stocks ended lower, 952 closed higher while 139 ruled steady. The total turnover on BSE amounted to Rs 5,021.73 crore, higher than Rs 4,006.89 crore registered during the previous trading session.
DON't FALL PREY TO PENNY STOCKS
As the market barometer Sensex closed above the 30,000-mark for the first time today, the BSE cautioned investors not to be carried away by the "euphoria" and refrain from investing in penny stocks. BSE chief executive Ashish Chauhan appealed to investors to invest only in good companies or opt for the mutual funds' route to invest in the markets. "The BSE Sensex reaching the 30,000-mark today was a much-awaited milestone. This was achieved on the back of strong economy and investments from both FPIs and local institutions. This is a great moment for the nation and BSE. " he said. As an exchange, we advice investors not to be carried by the 30,000 points euphoria. We would also advice investors not to invest in penny stocks and don't fall prey to fly-by- night operators," Chauhan told reporters after celebrating the milestone at the Dalal Street towards the end of the trading hours. Chauhan said while the world markets have moved up rapidly in past few days, "our markets were halting in between, but have picked up steam and remained better performing market. The rupee has also performed better and both foreign as well as local institutions had great time". Commenting on falling number of retail investors in the stock markets, Chauhan said the rally like this will attract a lot more investors to the markets. "This year will be a great time for the markets as the economy expands on the back of reforms like implementation of GST," he said. "However, our good times are yet to come and this is just the beginning. Next few years will be very decisive," Chauhan added. The BSE stock, which is listed on the rival NSE, remained almost unchanged at Rs 1,007.90, gaining only 0.27 per cent.