Sensex Records New High, Retreats At Closing

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Sensex Records New High, Retreats At Closing
Himali Patel - 31 October 2019

New Delhi, October 31: The Indian economy is coming back on track as the market has entered into a bull phase on the back of the cut in tax rate which boost the overall market sentiment. The S&P BSE Sensex on 31st October, 2019, reached a high of 40,392.22 during the intraday, while NSE Nifty reached high of 11,945.00. That said, the Sensex closed at 40,129.05 by 77.18 points up, whereas on the NSE, the Nifty50 index ended at 11,881.20 up by 37.10 points or 0.31 per cent. For the month of October Sensex gained by 3.78 per cent as it recovered from 36000 to 40392 marks. The market experts attribute the new high towards positive FII inflows, as well as reducing tension over US-China trade war.

“In October, FIIs have bought nearly $700 Million in equities, while so far this year they purchased $8.87 Billion. Moreover, impressive corporate earnings and reports the government is considering for further tax reforms also boosted sentiments. Moreover, turnaround of Auto sales volumes in the festival sessions, good monsoon, stable oil price added fuel in the market,” explained Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Private. Many experts also opined that with the recent price structure the markets momentum could gear up towards 41000 zones while 39300 zones could act as an immediate support to drive the positive stance of the benchmark index.

"Market is clearly in a positive setup with festive season seeing improvement in demand and corporate tax rate cut providing the much-needed earnings boost. Considering there is likely sequential improvement and earnings visibility, we believe the market will continue to trend upwards. We have an April 2020 Nifty target of 12,800,” echoed Naveen Kulkarni, Head of Research, Reliance Securities.

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