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Sensex crosses 30k: BSE chief cautions investors against euphoria

As the market barometer Sensex closed above the 30,000-mark for the first time on Wednesday, the BSE cautioned investors not to be carried away by the “euphoria” and refrain from investing in penny stocks.

business Updated: Apr 26, 2017 18:43 IST
A cake weighing 30 kg is cut as part of celebrations outside BSE as Sensex crossed 30k mark in Mumbai on Wednesday.
A cake weighing 30 kg is cut as part of celebrations outside BSE as Sensex crossed 30k mark in Mumbai on Wednesday. (PTI Photo)

As the market barometer Sensex closed above the 30,000-markfor the first time on Wednesday, the BSE cautioned investors not to be carried away by the “euphoria” and refrain from investing in penny stocks.

BSE chief executive Ashish Chauhan appealed to investors to invest only in good companies or opt for the mutual funds’ route to invest in the markets.

The benchmark Sensex scaled the 30,000-mount for the first time to close at 30,133.35, taking the BSE market capitalisation to a record Rs 124.83 trillion. The broader Nifty also continued its rally, scaling a new peak of 9,351.85.

The rally was driven by hopes of earnings growth and continued buying by FPIs and domestic investors.

“The BSE Sensex reaching the 30,000-mark today was a much-awaited milestone. This was achieved on the back of strong economy and investments from both FPIs and local institutions. This is a great moment for the nation and BSE.

“As an exchange, we advice investors not to be carried by the 30,000 points euphoria. We would also advice investors not to invest in penny stocks and don’t fall prey to fly-by- night operators,” Chauhan told reporters after celebrating the milestone at the Dalal Street towards the end of the trading hours.

Chauhan said while the world markets have moved up rapidly in past few days, “our markets were halting in between, but have picked up steam and remained better performing market. The rupee has also performed better and both foreign as well as local institutions had great time”.

Commenting on falling number of retail investors in the stock markets, Chauhan said the rally like this will attract a lot more investors to the markets. “This year will be a great time for the markets as the economy expands on the back of reforms like implementation of GST,” he said.

“However, our good times are yet to come and this is just the beginning. Next few years will be very decisive,” Chauhan added.

The BSE stock, which is listed on the rival NSE, remained almost unchanged at Rs 1,007.90, gaining only 0.27%.