The sensex in India rose to all time high of 21,293.88 on Friday, breaking the January 2008 record of 21,206.
New Delhi, Nov 1/Nationalturk- In a good news for Indian economy, the sensex of the country rose to all time high of 21,293.88 on Friday, breaking the January 2008 record of 21,206.
The Sensex kept going up and set a new all-time high record of 21,293.88 today. After setting a new peak, the Sensex gave up most of its gains as the session progressed. The Sensex provisionally ended 13 points higher at 21,178.35.
The Sensex surpassed its previous record high of 21,206.77 touched on January 10, 2008. Just months after hitting a record high on January 10, 2008, the Sensex slumped 64 per cent to a low of 7,697 by October 2008. The selloff coincided with the global financial crisis, which hit risk assets like stocks severely.
‘’Sustained inflow from foreign investors proving helpful’
According to market analysts, sustained inflows from foreign investors have been the biggest driver for the Indian Sensex, which gained over 9 percent in the past month. Overseas investors have pumped in close to Rs. 18,000 crore (Indian currency) in the past 20 sessions.
The gains represent a remarkable comeback for the Sensex, which has advanced nearly 22 per cent since hitting an intraday yearly low of 17,448.71 points on August 28, when the rupee had hit a record low of 68.80 to a dollar.
“Foreign fund inflows into select stocks have pushed up the Indian markets, which have not seen broad participation from investor community. Any reversal of fund flows could hit Indian markets harder. We are closer to US tapering than ever,” MD of Dalton Capital UR Bhat was quoted as saying by Indian TV news channel NDTV.
Foreign investors have faith in our economy: Indian FM
Indian Finance Minister P Chidambaram was upbeat over the development and said recent steps taken to boost country’s economy are yielding results. “Foreign investors continue to retain faith in the Indian economy”.
“The current account deficit is well under control and we are confident that we will adhere to the red line on fiscal deficit,” he said.
He said current account deficit for this fiscal likely to be USD 60 billion against USD 88 billion last year.
The Current account deficit or CAD has been a major worry as the single biggest reason why the rupee hit a record low this year and the revision will bring relief.
Chidambaram said with a sharp pick-up in exports in the last three months and a sharp reduction in gold imports, there was a chance that the CAD this year would be lower than today’s estimate of $60 billion of the GDP.
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Faiz Ahmad / NationalTurk India News
