Continuing their record-breaking streak, Indian markets hit new highs today today. The Sensex rose over 100 points to a new high of 41,163 while Nifty edged higher to 12,138, also a new high. The index for banking stocks, Nifty Bank, also hit 32,000 for the first time, rising about 0.40%. Among the Sensex stocks, Yes Bank, TCS, Tata Steel, ICICI Bank and SBI were up between 0.5% to 1%.
Hopes of an economic recovery over next few quarters on the back of various measures announced by the government, including corporate tax rate cut, have pushed Indian markets to new highs. Foreign portfolio investors (FPIs) have also turned net buyers of Indian equities after being net sellers in July and August.
The second quarter GDP data will be announced tomorrow and many economists expect growth to be below 5%.
“Clearly, markets are forward looking and optimistic that the recent measures taken by the government will spur growth ahead,” HDFC Securities said in a note.
Replying to a discussion on the state of the economy in the Rajya Sabha, Finance Minister Nirmala Sitharaman on Wednesday hinted that the “minimum alternate tax” and “dividend distribution tax” are regressive.
Asian markets were mixed today after US President Donald Trump signed into law a bill recognising Hong Kong’s rights, prompting an angry response from Beijing.
