Indian benchmark indices, Sensex and Nifty hit a record high in the opening trade on Monday. The domestic markets have been gaining traction on the back of smoother GST implementation, positive expectations from the Q2 corporate earnings and the strengthening of cross-border ties with Israel. The benchmark Sensex today soared 235 points to hit an all-time high of 31,595 after quarterly corporate earnings optimism gave domestic institutional and retail investors much hope to go in for fresh bets.
On Friday’s’ closing the markets saw biggest weekly gain since late May, with Sensex soaring 439.02 points to finish at 31,360.63, while broader Nifty snapped its three-week losing streak, garnering 144.90 points to close 9,665.80.
Here are the reasons why Sensex hit an all-time high today:
The upcoming quarterly results, along with macroeconomic data points and global cues, are expected to determine the trajectory of equity indices this week, market observers feel.
Smoother GST roll-out
The hassle-free implementation of the historic nationwide tax reform, GST supported the markets through the week.
Forex reserves at record high
The country’s forex reserves touched a new record high of USD 386.539 billion after it rose by USD 4.007 billion in the week to June 30, due to an increase in foreign currency assets (FCAs), the RBI said. Gold reserves also increased by USD 252.8 million to USD 20.348 billion.
Strengthening of Global ties
Narendra Modi’s maiden visit to Israel has brought positive sentiments among the investors, as the Prime Minister has clocked and locked deals and has firmed up economic ties with the technologically advanced and innovation-driven nation Israel.