Boosted by a downtrend in the inflation rate along with continuing inflows from foreign institutional investors (FIIs), the benchmark 30-share Bombay Stock Exchange (BSE) Sensex regained the 18,000-level on Wednesday after a gap of six months.
The index ended the day with a gain of 1.98% or 354 points at 18,202 — the highest closing since August 2 last year when it last finished over 18,000 points.
The broader 50-share National Stock Exchange Nifty, also rose by 2.14% or 116 points to end the day at 5,532 points. The last time Nifty closed above 5,500 was also on August 1, 2011.
January inflation was at a two-year low of 6.55%.
Jain expects the midcap index to witness a bigger rally than the Sensex. “The correction in Sensex, when it happens, will also be moderate,” he felt.