Mumbai: India’s 50-share Nifty Index on Tuesday hit the 11,000 mark, while benchmark 30-share index Sensex crossed the 36,000 mark for the first time to hit fresh record highs due to positive earnings and the government’s efforts to contain fiscal deficit target.
Analysts believe that the rally in the market is likely to continue after Prime Minister Narendra Modi on Sunday indicated that the upcoming Budget will not be a populist one.
Modi on Sunday said in an interview with Times Now that it was “a myth" that people wanted sops and freebies. It is the responsibility of the government to understand the needs and aspirations of the people and work towards achieving them honestly, Modi said.
At 9.55am, BSE’s 30-share Sensex was at 36,041.57, up 243.56 points, or 0.68%. The National Stock Exchange’s 50-share Nifty stood at 11,039.90, up 73.70 points, or 0.67%.
The gains in the market also follow government’s move to contain fiscal deficit target. Oil & Natural Gas Corp. Ltd on Saturday said it will buy out 51% government’s stake in Hindustan Petroleum Corp. Ltd for around Rs36,000 crore.
The proceeds from the sale will be used to narrow fiscal deficit of 3.2% for this fiscal. Earlier on Thursday, the government lowered its additional borrowing programme to Rs20,000 crore from Rs50,000 crore in less than a month after it announced to fund its fiscal deficit.
The Sensex has risen 5.11% and the Nifty 4.14% so far this year, while foreign institutional investors have bought Indian shares worth $993.16 million.
India is projected to grow at 7.4% of its gross domestic product (GDP) in 2018 as against China’s 6.8%, the International Monetary Fund (IMF) said Monday, making it the fastest growing economy among emerging economies following last year’s slowdown due to demonetisation and the implementation of goods and services tax (GST), Mint reported
In its latest World Economic Outlook update released on Monday ahead of the World Economic Forum in Davos, the IMF projected India’s GDP growth rate at 7.4% in 2018 and 7.8% in 2019.