BSE Sensex breached the 35,000 mark for the first time on Wednesday, as banks rallied after the government decided to cut its additional market borrowing requirement by 60% for the current fiscal year.
The BSE Sensex was up 0.89% at 35,081.82, while the broader NSE Nifty ended 0.82% higher at 10,788.55. Both indexes posted record closing highs.
Vinod Nair, Head of Research, Geojit Financial Services
After an anguished start market turned pace to new highs as improvement in sentiment due to government’s reassessment to cut down additional borrowings for the current fiscal raised its fiscal prudence. Additionally, outperformance of PSU banks on account of underlying growth story and value buying in pharma & IT stocks gave traction to the market."
Rakesh Tarway, Head of Research, Reliance Securities
The Sensex scaled another milestone to cross 35,000 level with strong buying in banking stock, especially PSU banks. The cut in additional borrowing has eased some pressure on bond yields and fiscal deficit.
We believe markets will continue to deliver new highs with more focus on sectors like defence, infrastructure, railways and core manufacturing sectors ahead of the budget scheduled on February 1. Increase in farm income to boost rural spending and affordable housing push sectors like banks, cement and realty sector to remain in focus.
Karthikraj Lakshmanan, Senior Fund Manager – Equities, BNP Paribas Mutual Fund
News that the government would reduce additional borrowing to soften fiscal deficit, and expectations of changes in the structure of goods and services tax also buoyed the market mood. The government is expected to simplify the tax filing process and may also reduce tax on about 70 goods and services. Indian indices bucked the overall global trend, which was muted following the release of weak macroeconomic data and drop in crude oil prices.
Anita Gandhi, whole time director, Arihant Capital Markets
It’s a celebration time for all the market participants as Sensex crossed 35,000 for the first time. Borrowings cut has led to softness in bond yields and buying interest in banking stocks.
Dhiraj Relli, MD & CEO, HDFC Securities
The lowering of additional borrowing requirement for current fiscal to Rs 200 billion from the earlier estimate of Rs 500 billion was welcomed by the market participants with the BFSI segment leading the pack. It is remarkable markets are rising in the phase of adverse expectations and scaling the 35,000 mark is an important landmark for the Sensex.
Sanjeev Zarbade, Vice President-PCG Research at Kotak Securities
Equity benchmarks ended at fresh record closing highs today. Despite tepid global cues, the investor sentiment was buoyed by government announcement of a lower borrowing target, which drove down the bond yields. Some easing in crude prices also fuelled market sentiment. Sector-wise, the rally was driven by banking & financials as well as technology, pharma, metals and select FMCG stocks
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