On the first day new financial year after a dramatic March, Sensex opened with a jump of 350 points and hit the all-time high of 39,000 for the first time – breaking the record of 38,989, hit in August last year.
The Indian share market created a history today, on April 1, 2019 by recording a new lifetime high of 39,028 in the morning session of the first day of FY 2019-20. Aligned with the Indian upscale, NSE benchmark Nifty50 also saw gains and crossed the 11,710-mark – just 50 points away from its all-time high of 11,760, as Wall Street closed the March quarter for 2019. The 39k Sensex flirting is largely affected by the strong global trends grounded by the optimism over trade talks between the US and China.
For March, Sensex has grown by 8% and after a dramatic downfall, it finally retrieved back to normalcy, thanks to the $6.5 billion year-to-date inflows from foreign institutional investors. One of the major domestic factors that helped in March up-rally for Sensex was the Reserved Bank of India’s surprise cut down on interest rates in late February, and the central bank is expected to further add to the rate cut this week on April 4.
The Indian share market is expected to outperform and remain on the upside for April, as it remains influenced by the positive foreign influx, expectation of revival in earnings growth. Also, the pre-poll effects will keep the Indian stock market on an upswing as remains closely entangled with politics, and the outperformance is here to stay. ICICIDirect’s head of derivatives Amit Gupta believes that in absence of any negative triggers from the policy, the Sensex benchmark can be pushed to even higher marks in April. But with the Lok Sabha election starting from April 11 and the poll results to be declared in May will show the shadows of the political indices.