President Pratibha Patil’s address reiterating conviction to reforms and development boosted sentiment in the market, pushing Sensex, the benchmark index of Bombay Stock Exchange, above the 15,000 mark for the first time since September 2008.
“People now feel that the government is in mood to take decision and act on it. There are feelers around that things will start looking up and the hope is building,” said Motilal Oswal, CMD of Motilal Oswal Securities Limited.
“Also, domestic developments are taking precedence over foreign cues. It’s India story being reiterated,” said Oswal.
Lot of decision at political level are expected and people are sitting on cash which they want to invest. In such a scenario, good news and sentiments are going to play the trigger.
The Sensex closed 137 points up at 15,008 points while the S&P CNX Nifty ended at 4,572 points, up 41 points. Both Sensex and Nifty graphs showed a marked up move following President’s speech on reforms in financial sector, disinvestments and revival economic growth.
“Both foreign institutional investors (FIIs) and retail investors bought today in the market and this shows the amount of confidence generate not only locally but also among foreign investors,” said Kotak.