Markets threatened to close below the 20,000 on the Sensex during the closing stages of today’s trade. But it was not to be. A small spurt of buying activity at the fag end ensured that the index closes a fraction above the coveted mark. Thus, the Sensex edged higher by around 100 points (up 0.5%) while the Nifty closed around 30 points higher (up 0.5%). The mid cap and small cap indices however, failed to find favour today and lost in the region of 1% each. The number of advances nearly matched the declines on the Sensex today.
Most Asian indices closed higher today whereas Europe is also trading in the positive currently. The rupee was trading at Rs 45.7 to the dollar at the time of writing.
Indeed. The manner in which the Sensex has gone from 8,000 to 20,000 must has taken even the most optimistic of the lot by surprise. But now, euphoria is pouring in from all quarters. Even the finance minister could not hold himself back. Speaking to reporters, Mr Mukherjee opined that he is happy that the Sensex is above the 20,000 mark. However, we hope Mr Mukherjee does not lose sight of the fact that a lot more needs to be done on the economic and fiscal deficit front if this rally has to be made more sustainable from a long term point of view. FIIs have proven to be quite demanding in the past and they may not take lightly in the future as well, any major letdown on the policies front.
It is not just the Sensex that is setting new records every day, other sectoral indices are also having their days in the sun. As per a leading daily, four of the thirteen sectoral indices on the BSE have reached their all time highs, while two others touched a one-year peak in the early trade today. Bankex, Healthcare, FMCG and auto indices are the ones that have touched their all time highs whereas capital goods index and the technology index broke their yearly records. Important to add that these indices are well diversified in terms of consumption, investment and exports theme and are not just concentrated in one particular segment of the economy. With the India growth story still in its nascent stage, it will not be surprising to see these indices touching new all time highs every few years from now.