LIVE TV DownloadNews18 App
News18 English
»
2-min read

Markets at All-time High, Rupee at 2-Yr High on Hopes of Stability, Reforms

India's benchmark BSE Sensex rose as much as 0.4 percent to hit a record high on Wednesday, surpassing its previous milestone hit in March 2015, while the rupee hit a 20-month against the dollar.

Tushar Dhara | News18.com

Updated:April 26, 2017, 10:49 AM IST
facebookTwittergoogleskypewhatsapp
Markets at All-time High, Rupee at 2-Yr High on Hopes of Stability, Reforms
File photo/People look at a screen displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai. (Image: Reuters)
Loading...

Mumbai: Indian stock markets, including the Sensex and the Nifty, scaled an all time high and the rupee was trading at its strongest level in two years on the domestic cues of continuing market reforms and political stability.

The Bombay Stock Exchange’s Sensex was up 0.33% to 30,071.61 while the National Stock Exchange’s Nifty index scaled a new peak of 9,343.15 points after markets opened on Wednesday. The rupee breached the 64 mark against the American greenback and was trading at 63.99 per dollar, the strongest level since August 2015.

The reasons for market exuberance are not difficult to fathom.

The BJP looks set to sweep all three municipal corporations in Delhi. This comes on the back of the massive verdict in Uttar Pradesh last month, which the markets are interpreting as a period of political stability in the Centre and the states. Political stability lends itself well to economic reforms, such as the Goods and Services Tax, bankruptcy code bill and agricultural, banking and labour reforms.

The market has been further bolstered by rosy predictions for economic growth and record FII inflows. The government estimates that the Indian economy will grow at 7% in the 2016-17 fiscal, retaining the tag of fastest growing major economy. Meanwhile, inflows by foreign institutional investors (FII) have been nearly $44 billion in the year ended March 31, another record.

FII inflows are investments by foreign institutions - including hedge funds, pension funds, insurance companies, mutual funds and banks - in Indian stocks and currency. Large FII inflows can help balance the perpetual current account deficits that India runs, thus lowering depreciator pressure on the rupee.

“A lot of the market exuberance right now has to do with hopes that the business environment in India will improve because of political stability and market reforms,” Rajesh Srivastava, the Chairman and Managing Director of Rabo Equity Advisers, told News18. “FIIs are investing in India because of the perception that the states and the centre are now on the same page,” he added.

| Edited by: Huma Tabassum
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 213.55 -2.49
Reliance 1,220.10 -1.96
ITC 274.70 -1.93
Dr Reddys Labs 2,565.55 0.09
TCS 1,970.30 -2.93
Company Price Change %Gain
Emami 355.05 -1.61
Yes Bank 213.15 -2.54
Reliance 1,219.75 -1.91
Rel Capital 152.80 2.86
Dewan Housing 128.90 4.67
Top Gainers
Company Price Change %Gain
Bharti Infratel 317.05 3.31
Zee Entertain 438.95 1.76
ONGC 137.10 1.56
Axis Bank 693.30 0.98
NTPC 137.45 0.88
Company Price Change %Gain
ONGC 137.10 1.48
Tata Motors 163.00 1.18
Axis Bank 692.60 0.88
NTPC 136.85 0.48
IndusInd Bank 1,516.95 0.47
Top Losers
Company Price Change %Gain
TCS 1,970.30 -2.93
Yes Bank 213.55 -2.49
Indiabulls Hsg 623.50 -2.48
Bajaj Finserv 5,885.15 -2.33
Coal India 215.15 -2.18
Company Price Change %Gain
TCS 1,971.75 -2.91
Yes Bank 213.15 -2.54
ITC 274.15 -1.95
Sun Pharma 415.10 -1.94
Reliance 1,219.75 -1.91

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results