Mumbai- Continuing with their winning momentum, the equity markets soared to yet another record high for the second consecutive day as India’s improved macro economic conditions and a private survey showing the BJP-led coalition winning around 212-232 seats in the Lok Sabha elections charged up investor sentiments.
After opening the day on a positive note, the Sensex jumped 405.92 points or 1.89 per cent to end the trading session at 21,919.79, just 80 points away from its psychological 22K levels. The NSE’s Nifty climbed 125.50 points or 1.96 per cent to end the day at 6,526.65.
The provisional data from the stock exchanges showed that the foreign institutional investors (FII) were massive buyers of Indian equities to the tune of Rs 2,577.44 crore.
“The way overseas investors are pumping in money into Indian markets shows that they are in search of growth markets. Though there is a continued slowdown in the domestic economy, it is still growing faster than some of the other emerging market economies. Additionally, the emerging political alliances ahead of the Lok Sabha election has provided hope for a strong and stable government at the centre,” said Arun Kejriwal, director, Kejriwal Research and Investment Services (KRIS).
While the markets could see some corrections at higher levels, Mr Kejriwal said that the broader trend would remain positive till the polls are over. “The Sensex and Nifty could rally another 4-5 per cent from these levels,” he added.
Meanwhile, the rupee rose to a near three-month high against the US dollar as positive equity markets and heavy investment by overseas investors into the Indian markets lifted sentiments.
