Published: Sat, July 15, 2017
Economy | By Melissa Porter

Sensex closes above the 32000 for the first time ever

Sensex closes above the 32000 for the first time ever

Sensex crossed the 32,000-mark for the first time and Nifty also created a new record at 9874.50 points.

The broader NSE Nifty ended 0.77 % higher at 9,891.70, having cleared two major technical resistance levels. Asian as well as the United States markets reacted positively to Fed Chair Janet Yellen's testimony.

Sentiment, back home, was upbeat amidst hopes of an interest rate cut by the central bank after retail inflation hit a historically low level of 1.54 percent in June. The stock had hit a 52-week high of Rs 496 on 1 November 2016 and a 52-week low of Rs 284.50 on 10 August 2016.

It touched a day's low at 31,731.43, down by 16 points. The stock had hit a high of Rs 430.50 and a low of Rs 399 so far during the day. "European indices like DAX, CAC 40 and FTSE 100 traded higher".

The rupee strengthened 15 paise to 64.39 against the dollar today, backed up by record-shattering stocks, as foreign capital stayed on an upward trajectory.

In investments, provisional data with the exchanges showed that foreign institutional investors (FIIs) sold stocks worth Rs 59.15 crore while domestic institutional investors (DIIs) invested Rs 279.13 crore.

Adding to the optimism, stock market participants believe lending rate cut could be on the cards in the next month's monetary policy after the industrial growth number eased further in May.

According to Deepak Jasani, head - Retail Research, HDFC Securities, the Sensex touched the psychological 32000 mark, aided by expectations of a rate cut, good monsoon and overcoming the fears of disruption due to introduction of GST.

From an index point of view, things might not look rosy for the second half of 2017, but investors who have an investment horizon of more than one year could look at buying quality stocks on dips.

On the other hand, Larsen & Toubro (32.17%), Mahindra & Mahindra (0.21%), and Oil & Natural Gas Corporation (0.06%) were the biggest losers in the Sensex.

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