Equity barometer Sensex jumped more than 300 points on Thursday to surpass 50,000-mark for the first time, another indication that the bulls are not done yet. The 30-share pack hit a record high of 50,126.73 and the Nifty50 index scaled the fresh peak of 14,738.30 in the early trade.
The Sensex hit 5,000 in 1999, took eight years to climb to 20,000 and 12 years after that to hit the 40,000-mark on May 23, 2019, in intraday trade. This time, it has taken the index less than two years to gallop another 10,000 points to hit the 50,000-mark.
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Top gainers in the BSE pack included Bajaj Auto, Bajaj Finance, Bajaj Finserv, HCL Tech, Reliance Industries and Asian Paints with their shares rising as much as 1.43 per cent. On the NSE platfrom, all the sub-indices were trading in green with Nifty IT outperforming the index by jumping as much as 1 per cent.
Here are the major reasons behind the rally:
Foreign fund boost: Wednesday’s rally was backed by a Rs 2,289-crore net foreign fund inflow, although domestic funds were net sellers at Rs 865 crore, data from the BSE showed. And on Tuesday, foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 257.55 crore.
Corporate earnings: Analysts said that strong corporate earnings by Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies and HDFC Bank are also fuelling the bullishness on Dalal Street.
Upbeat global cues: The domestic indices rose on optimism over the new US President Joe Biden’s administration will mean more support for the struggling US economy, setting off a recovery that’s crucial for the export-driven Asian region.
Budget 2021: Investor sentiments remained positive amid hopes of bold economic reforms in the upcoming Union Budget 2021-22. Finance minister Nirmala Sitharaman will present this year’s Budget on February 1.
IPO push: The Rs 4,633-crore maiden public offering for Indian Railway Finance Corp (IRFC), which closed on Wednesday, was subscribed 3.5 times. Through this offer, the government aims to mobilise about Rs 1,544 crore by diluting part of its stake in the NBFC, while the company is raising Rs 3,089 crore as fresh capital. Wednesday also witnessed the launch of the IPO for Indigo Paints, which was subscribed nearly two times.
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