Sensex soars by over 500 points amid a host of positive signs for the economy
Experts attributed this to the good monsoon forecast, the government’s new capital goods policy and reforms push, and an outlook upgradation by Morgan Stanley.
The Bombay Stock Exchange Sensex closed 576 points up at 25,881.17 on Wednesday after an afternoon of frenzied buying. Companies recorded strong earnings after a series of developments suggested that the economy is on the upswing. The 50-issue Nifty also ended strong at 7,935, up by 186 point from the previous day’s closing. Both indices closed on a one-month high, reported moneycontrol.com.
Experts attributed the showing to a variety of reasons. Among them was the good monsoon forecast, with private weather company Skymet announcing on Tuesday that that the rains will be 109% of the long-period average, for the four-month period from June to September. The markets were also buoyed by a series of positive industry announcements by the Union Cabinet, including its National Capital Goods Policy, which seeks to add 21 million jobs in the manufacturing industry by 2025.
According to the Economic Times, another reason could have been global investment bank Morgan Stanley’s decision to upgrade its outlook for India’s economy to “overweight” from “equal weight”.
