The National Stock Exchange’s benchmark index Nifty 50 breached the landmark level of 10,000 on Tuesday. This coincides with the Bombay Stock Exchange benchmark index Sensex breaching the 32,000 level recently. It has taken the NSE Index over two decades to go from 1,000 to 10,000.
Although the Nifty crossed the 10,000 level and touched the high of 10,011, it closed below the landmark level at the end of the day’s trading.
According to experts, Reliance Industries which accounts for about 6 per cent of the Index’s weightage, was partly responsible for the Nifty surge because Reliance shares has seen an upward move following the announcement of the Jio Phone which has caused a lot of optimism and demand among people. Reliance shares have gained significantly this month. Other NIFTY heavyweights also saw handsome gains to help the index reach the historic level.
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Another factor that has worked in the Nifty’s advantage is that companies have come out with reasonable first quarter results and most companies barring a few IT biggies have returned good numbers. Also, the large fears about a big hit with GST have not happened and GST roll out has been more or less smooth.
But the most welcoming factor was the prospect of a high GDP growth as projected by international agencies like IMF which projected India’s economy to grow at 7.7 per cent next year, coupled with another year of normal monsoons which has pushed equities to high levels.
