Stock market benchmark BSE Sensex index breached the psychological 50,000 points for the first time ever on Thursday. The 30-share BSE index surged over 300 points to hit an all-time high of 50,127 in early trade; while the broader NSE Nifty moved nearly 100 points higher to 14,731.
The rise in the index has been fuelled by foreign buying, with overseas investors pouring $2.6 billion into Indian equities in January after record net purchases last quarter. Prospects of a bounce back in earnings after the economy reopened following coronavirus-triggered lockdowns have spurred investor confidence.
Top gainers in the BSE pack included Bajaj Auto, Bajaj Finance, Bajaj Finserv, HCL Tech, Reliance Industries and Asian Paints with their shares rising as much as 1.43%.
On the NSE platfrom, all the sub-indices were trading in green with Nifty IT outperforming the index by jumping as much as 1%.
The domestic indices also rose on optimism over the new US President Joe Biden’s administration will mean more support for the struggling US economy, setting off a recovery that’s crucial for the export-driven Asian region.
Market players said that with the US markets creating fresh records, Sensex and Nifty too could witness smart gains. Wall Street greeted the new US President by climbing even higher on Wednesday, closing at records amid promises of big economic stimulus and relief that the inauguration was uneventful.
Meanwhile, investor sentiments also remained positive amid hopes of bold economic reforms in the upcoming Union Budget 2021-22. Finance minister Nirmala Sitharaman will present this year’s Budget on February 1.