Nifty50 reaches 10,000 for the first time everLast updated on Jul 25, 2017, 01:51 pm
Nifty50 has finally hit the coveted 10,000 in the opening trade on Tuesday.
It is a landmark moment for India Inc. as well as every Indian out there, as they have directly or indirectly contributed in making this magical number possible.
In tandem, the Sensex also rose 100 points to hit a record high of 32,350.
Here are the factors which made it possible.
Change of rules
According to experts, this record high was aided by the recent short coverings. SEBI's latest circular on P-notes was a key factor.
It forced the bears to run for cover as limitations on FPIs on issuing new P-notes, with derivative underlying, coaxed them into buying.
This caused a major short-covering led rally on indices, which subsequently facilitated better rollovers.
Jug jug "Jio"
Reliance Industries is basking on a good fiscal year and its success with Jio has been a major driver for the index.
It accounts for over 6% of the index weightage and is highly sought after as its telecom venture is finally starting to show results.
A 17% gain was noticed this month, aided by robust quarterly figures, bonus-issue and the launch of JioPhone.
Yellen's comment made the difference
Globally, things have been looking up. Dovish comments made by US Fed Chair Janet Yellen before the US Congress regarding gradually winding down its $4.5 trillion dollar balance sheet has given both Asian markets and the Wall Street a reason to be cheerful about.
European Central Bank's assurance, of continuing its monthly asset purchases at the rate of 60 million euros, also helped.
GST didn't play spoilsport
GST didn't have a major impact on the market as of yet and most of the quarterly numbers released have been in tandem with expectations.
HDFC in banking, HUL in FMCG, Infosys in IT posted decent healthy numbers and added to that was Q1 blockbuster given by RIL.
However, GST worries are there and there is still time left in crossing the danger zone.
The year looks promising
There is a general feeling of bonhomie all around. IMF expects India to grow at 7.7% in 2018, banking on recent economic reforms.
NITI Aayog Vice Chairman Arvind Panagariya pegs this estimate at 7.5%. All this are music to the ears of investors.
Panagariya says that there might be some hiccups due to GST but it will not dampen the country's present growth trajectory.