Yesterday the Indian benchmark indices hit new milestone including the Nifty touching the 9,400-mark for the first time. It crosses the mark gained just 15 days back. Markets have gained momentum. This is because the shares of consumer goods and agriculture-dependent companies showed confidence after the forecast of India Meteorological Department for a better monsoon rainfall for this year. These days the domestic equity market seems to be following this adage, breaking records one after another.
On Tuesday, Indian Meteorological Department said that India looks likely to receive relatively higher monsoon rainfall than previously forecast as concern over the El Nino weather condition eased. In India, monsoon delivers around 70% of its total annual rainfall, critical for crops such as rice, corn, cotton and soybeans as nearly half of the country’s farmland lacks irrigation.
The opening was also strong for the day and after a strong opening, the 30-share BSE Sensex continued its upward trend to hit a fresh intra-day high of 30,271.60 and ultimately ended at 30,248.17, spurting 314.92 points which are almost 1%.
The Nifty also rose to a record high of 9,414.75, crossing its previous milestone recorded on just 5 days ago. As the day ended, the NSE Nifty was ended at 9,407.30. It is also gained almost 1% to reach 9,407.30. Bombay Stock Exchange (BSE) also gained 1% to touch 30,271.60, its highest ever. Both the indices hit their last closing highs on 5th May, 2017. Along with the benchmark BSE Sensex, BSE 500, BSE Mid-cap and BSE Small-cap index hit new highs after the Meteorological Department said that the prospects of the monsoon have brightened. In broader markets, BSE Mid-cap and BSE Small-cap indices gained around 1% each, in line with the benchmark indices.
Going into the individual stocks, Marksans Pharma surged 13% to Rs 55 a piece. The Indian consumer goods company Hindustan Unilever Plc surged almost 4.5 % in early trade and scaled a new high record after a global brokerage firm upgraded shares of the parent company, Unilever PL. Actually, in the telecom stocks, it advanced the most, thanks to a rally in the shares of Bharti Airtel, Idea Cellular, and Bharti Infratel. In Wednesday’s trade, Bharti Airtel surged over 9 % as top brokerage firms which maintained ‘buy’ ratings on the telecom stock despite the company having reported a Sixty-Nine percent fall in the month of March quarter net profit at Rs 471 crore.
After a gap of nearly 2 weeks, the foreign institutional investors have turned net buyers in the Tuesday’s trading session first time after 25th April 2017. The stock exchange provisional data shows that the net investments worth of- over Rs. 300 crores in equities.
Now it is clear that India’s economic growth has taken a turn towards an upward trend. And we need to wait for another few years to see whether we will be able to compete with other developing countries and developed countries in the world.
