Sensex touches 79K, Nifty overcomes 24K hurdle

NEW DELHI: The ongoing dream rally in equity market following the formation of the BJP-led coalition government at the centre continues to take the benchmarks – BSE Sensex and NSE Nifty50 – to new highs. In just two sessions, the 30-share index Sensex galloped from 78,000 points to 79,000 points while broader Nifty50 breached the 24,000 level for the first time on Thursday.

From the low of June 4 when the general election results were coming out, Sensex and Nifty have seen a rally of 10% each. While the Sensex has added over 7,100 points during the period, the Nifty has gained 2,160 points. On June 4, the benchmarks saw a correction of over 6% each but recovered fully in just 3 sessions.

“This must have been one of the fastest recoveries in the history of Indian capital markets which can be attributed to fund flows… Market participants have been buying equities left, right and centre over the last fortnight which has driven the markets higher,” said Apurva Sheth, head of market perspectives and research, SAMCO Securities.

Foreign portfolio investor’s (FPI) fund flow data from Sebi shows they have been buyers in last 12 sessions from June 10-26, pumping about Rs 32,087 crore. DII’s have pumped in Rs 20,002 crore in the same period.

Jaykrishna Gandhi, Head – Business Development, Institutional Equities, Emkay Global Financial Services said the recent move is supported by the private banking sector which has been a laggard from the previous 8 quarters but a usual favourite amongst the foreign participants.

“We hope the positive momentum to continue as we enter July with confidence of a reformative budget, which will help in economic growth momentum and supported by flows from both domestic and foreign investors…Large caps with better valuations and new segments tapping capital markets will be in focus,” added Gandhi.