Mumbai. The local stock markets rose strongly on Thursday and the BSE Sensex crossed the 83,000 mark for the first time during trading. The NSE Nifty also closed at its highest level ever. According to analysts, the market gained momentum due to buying of shares of major companies and foreign capital inflows amid the rise in global markets.
The 30-share BSE Sensex crossed the 83,000 mark for the first time due to good buying before the close of trading. The index jumped 1,593.03 points or 1.95 per cent to a record 83,116.19 points an hour before the close of trading. In the end, it closed at its highest level of 82,962.71 points, up 1,439.55 points or 1.77 per cent. The National Stock Exchange’s Nifty also closed at a record 25,388.90 points with a jump of 470.45 points or 1.89 per cent. During the day’s trading, the Nifty had climbed 514.9 points to a record 25,433.35 points. Nifty and Sensex opened strongly and remained in a range till noon.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Bulls took charge in the market before the end of trading and both the standard indices reached new highs. The global market got positive momentum due to the expectation of reduction in policy rate by the European Central Bank and the US Federal Reserve.” Among the 30 companies of Sensex, Bharti Airtel, NTPC, JSW Steel, Mahindra & Mahindra, Adani Ports, Tech Mahindra, Larsen & Toubro, Tata Steel, State Bank of India and Kotak Mahindra Bank were the biggest gainers. Among the major companies, Nestle was the only company which declined.
Religare Broking Ltd. Senior Vice President Ajit Mishra said that buying and selling remained light for most of the trading. In the last one or two hours of trading, the market rose due to rapid buying in the shares of major companies of all sectors. The BSE Midcap index representing the shares of mid-sized companies rose 1.32 percent and the Smallcap index rose 0.79 percent. In other Asian markets, South Korea’s Kospi, Japan’s Nikkei and Hong Kong’s Hang Seng were in good gains while China’s Shanghai Composite was in slight loss. There was a rise in the major markets of Europe during the afternoon trade. The US markets were in sharp gains on Wednesday.
VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services, said, “The inflation data in the US has been somewhat positive for the market. Inflation slowed down to 2.5 percent in August from 2.9 percent earlier.” He said, “This has cleared the way for a reduction in the policy rate in the Federal Reserve’s monetary policy review in September. Since core inflation remains high at 3.2 percent, the Federal Reserve may remain cautious and may not cut the interest rate by 0.50 percent and may opt for a 0.25 percent cut.” According to stock market data, foreign institutional investors bought shares worth Rs 1,755 crore on Wednesday. Global oil benchmark Brent crude rose 1.39 percent to $ 71.59 per barrel.