Mumbai: The markets surged to a new high on Wednesday after the International Monetary Fund (IMF) said India’s macro-economic outlook is broadly favourable despite recent surge in global oil prices and tightening of global financial conditions. A better than expected earnings growth in US and expectation about stimulus measures in China to mitigate the impact of trade war also triggered a strong rally in global stocks, which helped the domestic equities to maintain their winning momentum even at higher levels.
Nifty zoomed past 11,400 level to close the session at 11,450, gaining 60.55 points or 0.53 per cent while the Sensex ended the day at 37,887.56, up 221.76 points or 0.59 per cent. “There was some initial profit taking seen from higher levels; but didn’t last long. The index once again reclaimed its highs as we saw strong buying emerging in some of the heavyweights. Wednesday’s price action has once again proved how strong the trend it and it’s not easy going against this tide. So, unless we see any exhaustion, it’s advisable to stay with the flow,” Angel Broking’s Sameet Chavan said. While outflows remained high, IMF noted that this episode of capital reversal has been less intense than the 2013, thanks to India’s stability-oriented policies.