BSE Sensex: 27,000 and counting. What next?

Sep 03 2014, 02:18 IST
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SummaryThe BSE Sensex surpassed the 27,000-mark for the first time and the Nifty touched 8,100-level with foreign funds continuing frenetic buying in pharma, oil & gas and auto stocks as good news on CAD further boosted sentiment.

The BSE Sensex surpassed the 27,000-mark for the first time and the Nifty touched 8,100-level with foreign funds continuing frenetic buying in pharma, oil & gas and auto stocks as good news on CAD further boosted sentiment.

Continuing its surge for the eighth day, Sensex hit fresh life-time high of 27,082.85. Later, the barometer settled at an all-time closing high of 27,019.39, up by 151.84 points, or 0.57%, over the previous close.

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It took 40 trading sessions from July 7 to September 2 to reach the psychological 27,000-level from 26,000. The NSE Nifty crossed the key 8,100-mark to hit all-time high of 8,101.95. However, profit-booking at record levels trimmed part of gains and Nifty closed at 8,083.05 points, up by 55.35 points, or 0.69%.

A host of positive developments on domestic as well as global fronts helped the market go on winning spree.

After better-than-expected GDP data, the current account deficit (CAD) narrowed sharply to 1.7% of GDP in the April-June quarter against 4.8% of GDP in Q1 FY14 mainly due to decline in gold imports and rise in exports.

"The sentiment has been very positive as investors are buying into the India story which has seen some encouraging signs like improved GDP growth, likely funding support from Japan and soft crude prices," Sanjeev Zarbade, vice-president, Private Client Group Research, Kotak Securities, said.

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Japan had on Monday announced doubling of its private and public investment in India to about $34 billion over the next five years.

Foreign Portfolio Investors (FPIs) remained the main driving force behind the current rally. FPIs bought shares worth Rs 554.14 crore on Monday, as per provisional data.

Cipla was the best gainers with the scrip rising 5.23%. The company launched a generic drug for asthma and chronic obstructive pulmonary disease in Germany and Sweden.

Other stocks which supported the key indices to hit fresh life-time high were Bharti Airtel (4.24%), Sun Pharma (2.50%), HDFC Bank (2.01%), ONGC (1.15%) and ITC (1.28%).

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