It was the second day of rally for markets taking the BSE’s Sensex to a new lifetime high, crossing the May highs. Frontline IT stocks and other pivotals led the rally. However, midcaps and small caps did not do much.
The Sensex closed at 12,736.42 points up by 198.44 (1.58 per cent). The BSE Small Cap Index closed at 6,416.89, up by 19 points. The last closing of Sensex was 12,671 points.
The news of Sensex closing at the all-time high brought cheer and jubilation among the stock investors and brokers of the City.
They distributed sweets and lit fireworks at various terminals in the State capital to mark the occasion. Brokers had anticipated that the Sensex will be at the all-time high during Diwali but it happened a week ahead.
“The reason for this bullishness is the robust GDP growth, huge inflow of FII and fast-paced economic growth in the country,” Bhopal Stock Investors Association President & Resident Director of Kassa Finvest Santosh Agarwal told Hindustan Times.
“IT sector has led the rally due to the robust second quarter results from IT and banking sectors announced recently by the Infosys, which was more than expected,” he reasoned.
IT stocks have already gone on a sharp upward rally fuelled by impressive quarterly results from Infosys earlier this week, while other IT majors like TCS and Wipro are expected to follow suit with robust Q2 results.
The Sensex started plunging from April 17 and it was expected to make a rapid fall. However, it sustained the up trend.
“As the nation is aiming for a double-digit growth, the index could be anywhere and it cannot be termed over-priced. It is totally based on demand-supply economics and similar incidents happened earlier too in developing countries like Brazil,” Agarwal said.
The Sensex could even touch the 13,000 mark by December, he added.