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.
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