In a first, Sensex closes over 30K

MUMBAI: The BSE’s benchmark Sensex index closed above the 30,000 mark for the first time on Wednesday, riding a worldwide stocks rally fuelled by central bank asset buying. Experts advised investors against irrational exuberance, saying underlying fundamentals hadn’t changed; few expect the liquidity-driven rally to stop.

The Sensex rose 0.63%, or 190.11 points higher, to close at 30,133.35 points.

This follows the 50-share Nifty’s record closing above 9,300 points on Tuesday. On Wednesday, the Nifty climbed 0,49% to close at 9,351.85.

Across the globe, stocks climbed in markets from Tokyo to New York as investors cheered robust US corporate earnings and chances of tax cuts for American companies.

These, along with a centrist victory in the first round of the French presidential election, kept the markets upbeat.

While the S&P 500 gained 0.61% in overnight trading, the Nikkei 225 gained 1.1% on Wednesday.

“Global growth outlook has improved, driving the risk appetite for investors. In India, cost of funds have dropped. India’s risk premium has come down, because the reforms process may go on, after the government won the UP elections,” said Gopal Agrawal, chief investment officer – equities, Tata Asset Management Ltd.

While foreign institutional investors (FIIs) have taken a breather in April — after infusing around $6 billion since the start of 2017, there is no let-up in domestic investment.

Local institutions have bought ~7,118.9 crore of stocks this year. On Wednesday, they added another ~1,011 crore of stocks, provisional data showed.