Sensex hits new high, rupee up on strong domestic, global cues

26 Apr 2017

Indian stock markets extended their record run today with the BSE Sensex rising over 200 points to hit an all-time high of 30,146.54 and the NSE's Nifty moving above 9,350 levels this morning amid a global rally.

The rupee also strengthened against the dollar as a string of strong quarterly results including from Reliance Industries Ltd and positive global cues boosted the sentiment. The rupee rose to 20-month high of 63.93 against the dollar, compared to its Tuesday's close of 64.26.

Sentiment was also bolstered as Asian markets hit multi-year highs amid optimism over global economy.

Indian stock markets have been on a tear this year, making it one of the best performing markets in the world. The Sensex has surged nearly 13 per cent this year amid strong inflows from global as well as domestic investors.

The rupee has also gained nearly 6 per cent year-to-date against the dollar amid strong overseas inflows and optimism over further economic reforms after BJP's landslide win in the Uttar Pradesh elections.

Foreign investors have so far this year poured in over Rs40,000 crore (net) in domestic equity markets while domestic institutional investors have put in over Rs15,000 crore.

Asian stocks extended gains for a fifth straight day on Wednesday as Wall Street hit new peaks. A strong finish to US markets was the main driver. The Nasdaq Composite hit a record high on Tuesday, while the Dow and S&P 500 brushed against recent peaks as strong earnings underscored the health of corporate America.

Also fanning the global rally were reports that US President Donald Trump's tax reform proposals, due to be announced on Wednesday, would include a slashing of the corporate tax rate and lower taxes on offshore earnings stockpiled by US companies overseas.

Global stock markets have also been boosted after business-friendly centrist Emmanuel Macron won the first round of the French vote on Sunday.

Among Nifty50 stocks, Wipro which gained over 3 per cent after it announced 1:1 bonus issue though its June quarter guidance was weaker than expected. Succumbed to profit booking and was trading 0.54 per cent lower at Rs. 491.60.

At 1:44 pm, the Nifty was up 46 points at 9,352 while the Sensex rose 164 points to 30,107.