Sensex, the main index of Indian equities markets on Wednesday touched a historic high of 28,006 points, crossing the major psychological level of 28K for the first time in the early morning trade session, surpassing the previous high of 27,969.82 points hit in the intra-trade on Monday, as Tuesday was a holiday on account of Muharram.
The index was trading up 34 points or 0.12 percent around 1.00 p.m. at 27,894.30 points after coming down from the psychological barrier of 28,000-mark.
Healthy buying was observed in bank, healthcare and capital goods stocks. While selling pressure was seen in the metal, oil and gas and power sectors.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 27,907.19 points, was trading at 27,894.30 points (at 1.00 p.m.), up 33.92 points or 0.12 percent from the previous day’s close at 27,860.38 points.
The Sensex touched a high of 28,006.60 points and a low of 27,881.74 points in the trade so far.
According to Angel Broking, the Indian markets were expected to open on flat note tracking SGX Nifty and most of Asian markets.
On Tuesday, the U.S. stocks fell led by energy companies as oil reached a three year low. European stocks too fell led by drop in the oil and gas stocks.
Other market analysts said that they expect further reforms being announced by the government which in turn might lead the bursar into a bullish spell over the medium term.
“We expect further reforms and remain positive on the domestic infrastructure and cyclical sectors over the medium-to-long term,” said Dipen Shah, head – private client group research, Kotak Securities.
“Ater the steep run-up in several of these stocks, we recommend sticking to quality and advise selectively investing in stocks having strong balance sheets and ethical managements.”
ZyFin Advisors’ chief executive Devendra Nevgi told IANS that with all the triggers on which the market can react being positive, the earnings need to catch up for the markets to remain on the high growth trajectory.
“There are healthy global cues like reduction in crude prices, Japanese central bank’s decision to print-in more money and the pick-up in global sentiments,” Nevgi said.
The Indian markets were closed Tuesday on account of Muharram and will be shut on the Nov 6 (Thursday) on Guru Nanak Jayanti.
The S&P BSE bank index gained 242.57 points, healthcare index moved up by 123.22 points and capital goods index got augmented by 61.89 points.
However, metal index dropped by 287.87 points, followed by oil and gas index which was lower by 60.52 points and power index which lost 7.38 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was trading 8.75 points or 0.11 percent up at 8,332.90 points.