Sensex record high is led by govt initiatives: market expert

ANI | Updated: Jan 17, 2018 18:14 IST

Mumbai (Maharashtra) [India], Jan 17 (ANI): Market Expert Alok Churiwala on Wednesday remarked the historic high of the Sensex as a progressive day, which will going forward, enable the markets to only do better.

"I think it is a great day for the investors, for both the Indian investors and the foreign investors who have invested in India. It is a great important psychological barrier which we have breached today and definitely a day for celebration," Churiwala told ANI.

Hailing the Goods and Services Tax (GST) initiative taken by the Modi-led Government, Churiwala said that government policies are taking corporate India in the right direction.

"You have government policies which are in the right direction as far as corporate India is concerned. You have had hard core reforms like demonetization, GST, which have been well accepted by the public, and also the banking laws which have been passed. They are addressing the problem of defaulters. All these put together, are very well for the investors of the country," he added.

Churiwala also attributed the record hitting spree of Sensex to global markets.

"We have seen a lot of domestic money come towards Indian markets, via the mutual fund route, via the SIP route. That's keeping the markets very buoyant. On the international front, you have the Dow Jones doing very well, that is adding to a lot of liquidity," he asserted.

He further said that the industry expects the final budget of the Modi government to be populist.

"Since it is the last budget prior to election, we expect it to be a populist budget. A budget that is going to be liked by all. But of course, the fear of any tweaking in the tax regime, as far as long term capital gains tax, short term capital gains tax, if any of that is about to come then that could be a big dampener to the sentiment of the markets," he concluded.

The market on Wednesday extended rally in the afternoon trade, as the BSE Sensex hit 266.34 points high at 35,037.39 and the 50-share NSE Nifty rallied 73.0 points to 10,773.50.

The Nifty Bank hit all-time fresh highs of 26,150.05, largely driven by PSU banks after government reduced requirement of additional borrowing for the year and early resolution to Bhushan Steel case.

FMCG major Hindustan Unilever (HUL) is expected to announce a great set of results today due to demonetisation base, GST restocking, nation-wide launch of Ayush and international parent's cost cutting focus.

The rupee recovered sharply in morning after the government reduced its requirement of additional borrowing.

However, it strengthened by 10 paise to 63.92 against the US dollar in morning.

Yesterday, the rupee had lost 55 paise or nearly one percent -- its biggest single-day crash in eight months -- to end at a fresh two-week low of 64.04 against the US dollar, hit by a double whammy of rising global crude prices and worsening trade deficit. (ANI)