India’s NSE Nifty index hit the 10,000-mark for the first time on 25 July, further cementing its position as one of Asia’s best performing stock market gauges.
The NSE Nifty 50 Index rose 0.45 percent to 10,011.30 at 9:16 am, led by cement makers and select bank stocks. The S&P BSE Sensex too hit an intraday record high of 32,374.
Indian shares have hit multiple records this year amid optimism about Prime Minister Narendra Modi’s policies, with the economy expanding at about seven times the pace of Japan.
Global and local funds have pumped about $16 billion into its stock market this year alone, according to data compiled by Bloomberg. Besides that, overseas investors have bought $20.2 billion worth of local bonds so far in 2017, according to depository data.
A big factor for the phenomenal rise in stock value has been the shift of Indian savers to more financial assets as prices of gold and property moderated after the government’s ban on high-value currency notes.
Mutual funds got nearly Rs 28,300 crore of inflows in the first three-months of the current financial year that began on 1 April, as against about Rs 9,500 crore in the previous year, according to data from the Association of Mutual Funds in India.
Nifty at 10,000 is a milestone, not the peak of the Mount Everest, Sanjay Sinha, founder, Citrus Advisors, told BloombergQuint.
“As long as the companies that are a part of Nifty are able to show a growth in their earnings, hopefully with a renewed vigour in the next few quarters unlike the last couple of financial years, we can expect these levels to be held and higher levels very soon,” he said.
(We all love to express ourselves, but how often do we do it in our mother tongue? Here's your chance! This Independence Day, khul ke bol with BOL – Love your Bhasha. Sing, write, perform, spew poetry – whatever you like – in your mother tongue. Send us your BOL at bol@thequint.com or WhatsApp it to 9910181818.)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)