SENSEX SCALES MOUNT 34 K
MUMBAI: It was yet another day of records for stock markets on Tuesday as both Sensex and Nifty closed at life highs, mainly because of some fag end buying by participants. Rising for the second straight session, the 30-share Sensex hit 34,010.61, a fresh closing high -- with a gain of 70.31 points, or 0.21%. This was its highest closing since Friday when it had closed at 33,940.30. It had risen 184.10 points in the previous session on Friday. The broader Nifty jumped 38.50 points, or 0.37 per cent, to end at a new peak of 10,531.50, breaking it previous record of 10,493 reached on Friday.
MUMBAI: Indian stocks hit a record high, with the benchmark Sensex breaching the 34,000-point mark for the first time on Tuesday, spurred by abundant liquidity support and positive investor sentiment as the year draws to a close.
The BSE Sensex rose 0.21% to end trading at a new high of 34,010.61 points while the Nifty gained 0.37% to 10,531.50.
Most global markets were flat as trading thinned due to yearend holidays in several regions of the world.
Markets are rallying on positive sentiment driven by hopes of a revival in quarterly corporate earnings and a favourable budget, said Gaurang Shah, head investment strategist at Geojit Financial Services Ltd. “Markets are expected to hit multiple highs in the year ahead.”
Most analysts expects stocks to extend the rally in 2018. Corporate earnings are likely to revive strongly in the coming months due to a low base and an expected recovery in economic growth, said Hemang Jani, senior vicepresident, advisory, Sharekhan.
“Earnings of Sensex companies are expected to grow, aided by strong performance of automobiles, banking and energy sectors. Some of the consumer companies have reported encouraging Q2 numbers while management commentary indicates signs of demand revival.”
Disappointing earnings growth this year have raised concerns that stock valuations are expensive. Steep valuations have not deterred foreign institutional investors (FIIS) from pumping money into Indian equities. Year to date, FIIS have bought a net of $7.5 billion in Indian shares. Domestic institutional investors have bought stocks worth ₹91,354.2 crore in 2017.
“The second half of FY18 should see an earnings recovery, led by low base of demonetisation and signs of pick-up in rural consumption,” Motilal Oswal Securities Ltd said in a report on December 19.