The Sensex on Tuesday touched a 23-day high as positive budget proposals and strong global markets kept investor sentiments upbeat. The benchmark index of the Bombay Stock Exchange (BSE), which opened 243 points up, ended the day with a gain of 343 points, or 2.09 per cent, at 16,772 points.
According to experts, buying by foreign institutional investors (FIIs) and participation of domestic institutions along with retail investors helped markets open 1.47 per cent above its previous close and retain the rally through the day. The Instanex FII Index was up 1.7 per cent at 349 while Instanex DII 15 portfolio, the index tracking Domestic Institutional Investors, was up 1.7 per cent.
“FIIs and retail investors had booked profit on Friday as markets gained on positive Budget. On Monday, global markets were positive, boosting investor sentiments. It is not surprising that markets hit a five-week high,” said Dinesh Thakkar, chairman and managing director of Angel Broking. The S&P CNX Nifty of the National Stock Exchange crossed 5,000, as it gained 94 points, or 1.9 per cent, to end at 5,017.
Experts feel the rally will last about a month as market analysts and the corporate sector factors in positives of the budget and FIIs stay invested.