The Bombay Stock Exchange (BSE) benchmark Sensex jumped to its highest-ever trading level on Friday, beating the previous record set in January 2008, fuelled by strong foreign fund inflows and an easing of global economic concerns.
The BSE index rose 0.38% or 82.20 points to a new high of 21,246.72 points on the day (surpassing its previous high of 21,206.77 hit on January 10, 2008) led by banking and auto stocks, including Tata Motors gained on strong foreign inflows.
The broader Nifty was up 0.36%.
Sentiment has been improving across Asian markets over hopes that the US central bank may delay plans to start tapering its massive stimulus programme.
India’s markets were hit earlier this year by an outflow of foreign funds over fears of an end to the US programme.
India’s slowing economic growth, weak rupee and high trade deficit also weighed on the market.
But with global and domestic fears beginning to ease, investments are starting to flow in again.
Foreign funds pumped $2.55 billion into Indian equities in October, taking their total purchases to $16.19 billion for 2013, regulatory figures show.
The appointment in September of renowned economist Raghuram Rajan as India’s new central bank governor appears to have helped, analysts say.
Rajan, a former IMF chief economist, has outlined a plan to boost investor confidence, fight high inflation and support the ailing rupee.
Source: Hindustan Times