After flirting with the 18,000 mark for more than a week, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) finally closed above the milestone mark for the first time in 29 months as it ended the Thursday's trading session at 18,113.2.
Even the Nifty at the National Stock Exchange closed at a 29- month high of 5,442.
The Sensex witnessed strong gains towards the end of the day as the European markets opened strong and all European markets were up between 1 and 2 per cent. The Sensex gained 136 points or 0.8 per cent during the day. Market experts are bullish on the India story.
“18,000 is just a psychological figure and India remains an attractive destination for growth as inflation looks to come under control and FII’s too positive on their investments,” said R. Venkataraman, executive director, India Infoline. “The only cause of concern is the global factor which needs to be watched.”
There are, however, others who expect some correction at these levels. “The banking results have been good and are supporting but overall I see the markets entering into overbought positions at these levels and we may see some correction going forward,” said Aseem Dhru, CEO, HDFC Securities.
The foreign institutional investors (FIIs) have pumped in a total of Rs 9,938 crore in the Indian equity market in the month of July till now and a total of Rs 41,015 crore in the calendar 2010.
The global factors too helped the cause today as strong earnings in Europe led to gains for the stock markets in Europe and the Indian markets too moved in line after some good results posted by Indian companies.
Consumer durables, metal and auto indices rose sharply during the day.
1. The Sensex closed above 18,000 for the first time in two-and-a-half years on the back of good Q1 numbers and easing food inflation.
2. The rally was led by consumer goods, metal, auto, FMCG and financial stocks.
3. In 30-BSE index components, 25 stocks ended with gains, while five ended in