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Sensex in milestone march

Mumbai, July 2: Finance minister Arun Jaitley’s indications that his first budget will impose fiscal prudence and take other bold decisions have hit the right chords with the investors who propelled the key benchmark indices to their record highs today.

The BSE Sensex came close to the 26000-mark to end at a all-time closing high of 25841.21, while the Nifty of the NSE finished at 7725.15 to log a new closing peak.

Market circles said investors reacted positively to the finance minister’s statements, which indicated that the budget would contain measures towards fiscal prudence and try to get the economy back on track. They added that reports of the monsoon making progress in some parts of the country boosted sentiments. The Sensex is expected to hit the 26000-mark ahead of the budget on July 10.

“Markets ended higher on expectations of a reforms-oriented budget. Progress of monsoons also helped sentiments. Going ahead, we see the monsoon progress and the budget to be the two most important triggers for the markets,” Dipen Shah, head (private client group research) at Kotak Securities, said.

Across-the-board buying was witnessed today with participation from both domestic and foreign institutions. Provisional data from the bourses showed that foreign investors made a net purchase of Rs 193 crore. All the 12 sectoral indices on the BSE closed with gains of up to 2 per cent, with metal, healthcare, power, capital goods and auto among the leading gainers.

After opening higher at 25660.57, the 30-share index rallied to a new intra-day peak of 25864.53. It later settled at a new all-time closing high of 25841.21, logging a rise of 324.86 points, or 1.27 per cent. The Sensex has gained nearly 800 points over the past four sessions.

The Nifty gained 90.45 points, to end at 7725.15 after touching an intra-day peak of 7732.40.

The rally in the stock markets had its impact on the rupee as well. The domestic unit gained 38 paise — its biggest single-day rise in seven weeks — to finish at 59.69 against the dollar. At the forex market, the rupee resumed stable at 60.07 and hit a day’s high of 59.62 before before finishing at 59.69, a rise of 38 paise.

 
 
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