For two consecutive sessions on Wednesday and Thursday, the Sensex closed at lifetime highs. From a Modi wave to corporate results, there are plenty of things to cheer about. Here are 5 reasons why the Sensex has closed at new record highs.
Dec WPI inflation surprises on the lower side
December WPI inflation came in at a surprisingly low 6.16 per cent. What this means is that the RBI would hold interest rates in its policy meeting of Jan 28.
That's always good news for stock markets, which were anticipating a hike in interest rates.
May not upset the BJP applecart
The biggest worry for the stock market was the popularity of the Aam Aadmi party and its ability to upset the Modi applecart. However, recent events by the party are ensuring that the popularity of the party is waning. That's good news for the BJP and at the moment the markets love a Narendra Modi led BJP government at the centre.
A series of good Q3 numbers
Almost all of the results declared so far have beaten analyst expectations. These include Infosys, L&T, TCS, Wipro, HCL Tech, ITC, Yes Bank, HDFC Bank and HDFC. Markets have cheered the results and the Sensex has hit a new lifetime record closing.
Election tracker reveals a Modi wave
An opinion poll done by Lokniti-IBN Election Tracker sees solid gains for the BJP in crucial states of Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh and puts Modi in poll position to become the Prime Minister of the country. The markets have begun cheering this ever since the Election tracker began displaying results of select states since the start of the week.
Sales figures almost negligible
Last year domestic institutions sold aggressively, while foreign funds bought aggressively. However, in the last few weeks, domestic institutions have not sold much and are unlikely to do so, given that they may not have to subscribe in a big way to the government's divestment programme.