Sensex, Nifty close at lifetime highs on global cues, better growth prospects
The BSE Sensex rose 195 points, or 0.6%, to touch 31332.56business Updated: Jun 02, 2017 16:07 IST
Indian shares closed at record levels on Friday on positive global cues and as foreign funds continue to bet on Asia’s third largest economy after the government asserted that growth rate will bounce back from 6.1% recorded in March quarter.
A raft of reform such as Goods and Services Tax (GST) scheduled from July, scrapping of Foreign Investment Promotion Board (FIPB and allowing strategic partnership between Indian companies and foreign players have improved the investment output, while forecast of a normal monsoon and a brighter corporate earnings outlook is luring foreign investors to pump in more money.
The BSE Sensex, which had lost 21.81 points in the past two sessions, rose bounced back by 195 points, or 0.6%, to touch 31332.56, breaking the previous record high of 31,255.28 touched on May 31. The 50-share NSE Nifty was up 0.6%, to hit lifetime high of 9,673.50.
The Sensex closed 136 points higher, or 0.44%, at 31,273.29, while Nifty was up 0.4% at 9,653.50.
Asian markets were up with the Japan’s Nikkei closing 1.6% higher to cross the landmark 20,000, while Hong Kong’s Hang Seng was up 0.44% to near the 26,000-mark and South Korea’s Kospi was up 1.16%.
On Thursday, finance minister Arun Jaitley played down the impact of demonetisation on growth saying that a 7-8% growth was very reasonable, and that global factors were responsible for a slowdown in GDP growth to 6.1% in the quarter to March.
Although India lost the fastest growing tag to China, NITI Aayog Vice Chairman Arvind Panagariya said on Thursday India will regain the crown as early as the first quarter of 2017-18.
Hero MotoCorp and Tata Motors were in demand and rose by up to 3% on the back of strong May sales data.
Brokers said a firming trend at other Asian markets, which tracked a record close at all three main indices in New York in yesterday’s trade following strong private jobs report, kept sentiment upbeat.
The US Dow Jones Industrial Average closed 0.65 per cent higher in yesterday’s trade.
(With inputs from PTI)