MUMBAI: Upbeat foreign investors on Tuesday pushed the Bombay Stock Exchange benchmark index, Sensex, above the 20000-mark for the first time in 32 months, as they bet on companies that are driving the India growth story.The barometer closed 95.45 points up at 20001.55, its best closing since January 15, 2008, when the index ended at 20251.09.
Similarly, the 50-share National Stock Exchange benchmark index Nifty breached the psychological 6000-mark and ended at 6009.05, up 28.60 points.
Some brokers, however, feel that a short-term correction may be round the corner, but would nonetheless provide good investment opportunities.
Happy with the market milestone, Finance Minister Pranab Mukherjee told reporters in New Delhi that “We all know that the Sensex is always a little bit unpredictable. (But) I am happy that for the first time after January 2008, it has crossed 20000.”
Analysts said the rally in Indian market was propelled by strong inflows from overseas fund houses, which have made a net investment of over Rs.71,000 crore in domestic stocks so far this year.
“Sensex gushing past the 20000-mark stands testimony to the attractiveness of India as a preferred investment destination,” Angel Broking CMD Dinesh Thakkar said.
Tuesday's close marked the third straight session of gains. Significantly, the Sensex has completed its journey from 17971 on August 31 to 20000 in just 15 trading days.
The gain was fuelled by a smart gain in blue chips like L&T, HDFC, HDFC Bank, TCS, Infosys and BHEL.
Infosys improved by 0.9 per cent to Rs.3,058.50, TCS by 2.5 per cent to Rs.952.75 and Wipro by 2.7 per cent to Rs.435.10.
L&T rose by 2 per cent to Rs.2,034.75, Cipla by 1.92 per cent to Rs.320.75 and BHEL by 1.73 per cent to Rs.2,478.95.
Reliance Industries acted as a drag, closing 0.60 per cent lower at Rs.1,033.50.
Asian stocks rose after U.S. homebuilder Lennar Corp posted better-than-estimated profit, boosting optimism in the economic recovery worldwide.
Rupee edges up
The rupee on Tuesday gained three paise to close at a four-month high against the U.S. currency amid sustained capital inflows, completing five-session of gaining string.
In fairly active trading at the interbank foreign exchange market, the rupee closed three paise higher at 45.67/68, the level not seen since May 18, 2010, when it had closed at 45.59/60. It ended at 45.70/71 on Monday. — PTI
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