Sensex Conquers 35,000, Nifty Hits 10,800 As Records Tumble

By SM.17 Jan, 2018

imran-azhar

 

 

 

Continuing its record-breaking spree in the New Year, the Sensex hit the 35,000 milestone today. The benchmark index surged 310 points to close at 35,081. Another benchmark index Nifty hit 10,800 today, before closing at 10,788, up 88 points. Apart from a global market rally, optimism about acceleration in corporate earnings growth and economic growth has spurred markets to new highs this year, say analysts. The rupee was also higher at 63.88 against the US dollar in recent trade. The rupee had closed at 64.03 against the US currency on Tuesday.


10 Things To Know About The Journey Of Sensex To 35,000:

The gains in the markets were led by banking, healthcare and IT stocks. The Bank Nifty, the index for financials, rose over 1 percent to a new intra-day high of 26,335.


IT majors Infosys, TCS, HCL Tech and Tech Mahindra hit 52-week highs. "Value-buying is helping support IT stocks," said Hitesh Agarwal, EVP and head-retail research at Religare Securities.


The third-quarter earnings of India Inc have also got off to a good start with IT majors TCS and Infosys meeting market expectations.


Some recent economic data points such as auto sales and industrial production have also been encouraging.


Banking sector stocks gained after the government cut its additional market borrowing requirement by more than half for the current fiscal year to Rs. 20,000 crore. The news sent the benchmark 10-year bond yields down sharply.


Among the banking stocks, SBI surged 3.7 percent while Axis Bank gained 3.9 percent and ICICI Bank advanced 2.73 percent.


Experts say that in the near term, the Union Budget - which is set to presented on February 1, third-quarter earnings of India Inc and global markets will determine the trend in the Indian markets in the near term.


Many brokerages expect the Sensex and Nifty to give good returns in 2018, though not as strong as 2017, a year in which the Nifty rose nearly 27 percent. "We are setting our year-end December 2018 Nifty target at 11,500 (implied Sensex target of 37,000)," Deutsche Bank said in a research note, adding that expectation of double-digit earnings growth forms the keystone of its positive view on the market in 2018.


According to experts, rising inflation and global crude prices remain a worry for Indian markets.


Besides, if earnings expectations are not met, it could be a disappointment for the markets given the high valuations, they add.