Sensex hits new high, zooms past 35K

MUMBAI: The Sensex crossed the 35,000 mark for the first time on Wednesday as investors continued to bet on a recovery in corporate earnings and the government announced it will borrow less than it planned to.

The announcement helped ease worries of a widening fiscal deficit, which could crowd out borrowing by private firms and hence limit their investment opportunities.

Crude oil prices, interest rate hikes by foreign central banks, and Budget announcements remain key triggers for the markets.

BSE’s 30-share Sensex closed 0.89% or 310.77 points higher at 35,081.82 points, while National Stock Exchange’s 50-share Nifty climbed 0.82% or 88.10 points, to close at 10,788.55 points. It was a record close for both indices.

“People are now more confident about earnings growth than before. The undertone of earnings that are announced point to optimism,” said Hemang Jani, senior vice-president, advisory, at retail-focused brokerage Sharekhan, owned by BNP Paribas SA.

Foreign investors have bought Indian shares worth $278.65 million while domestic mutual funds and insurance firms have pumped in ₹1,027.01 crore this year so far. In 2017, domestic institutions bought Indian equities worth ₹90,834.80 crore and FII were net buyers of $8 billion.

“Liquidity is driving the markets. There are pockets of bubbles in selective small and midcap stocks,” said Navneet Munot, chief investment officer at SBI Funds Management Pvt Ltd.

“It is difficult to gauge if the uptrend will continue. A correction is not ruled out at these levels, but momentum and buoyancy is very strong. Broad direction remains positive,” said Jani.

All eyes are set on the upcoming Union Budget.