Sensex, Nifty jump nearly 5% to new peaks this week ...

Sensex, Nifty jump nearly 5% to new peaks this week ...

Bulls roared back after taking a reprieve for a week, sending both key indices Sensex and Nifty up almost five per cent to touch their new peaks on positive developments during the week under review.

Increased buying by foreign funds, onset of the southwest monsoon, although few days late, likely hike in natural gas prices after July 1 and examining of raising import tax on sugar by the government to support local prices boosted the overall sentiments in the market.

Brokers attributed the rally to slight improvement in HSBC Indian Manufacturing Purchasing Managers' Index (PMI), a measure of factory production, in May.

The sentiment also remained positive after the Reserve Bank of India (RBI) pleased markets by unlocking about Rs 40,000 crore of banking funds by cutting the statutory liquidity ratio (SLR) by 50 basis points.

Shares of realty, metal, PSU, refinery, capital goods, power, consumer durable, banking and auto sectors firmed up on good buying enquiries.

The Sensex surpassed its previous all-time high of 25,375.63 registered on May 16 to log its new intra-day historic high of 25,419.14 during the week before settling the week at 25,396.46, showing a sharp weekly gain of 4.87 per cent or 1,179.12 points, the best in five years.

Kishor Ostwal, CMD, CNI Research Ltd, said, "Markets made new highs post Modi win.

 Policy paralysis has come to an end as Modi got the 284 seats which was above 272 required as FII started pumping in more money. The Indian economy by now had hit the bottom and recovering from the big blows of the last 7 years."

"Retail investors have now started entering market and participation is rising. All this clearly suggests India has entered the mother of all bull markets and we can see Sensex crossing 41,000 in 2 to 3 years. Nifty will try to cross 7,600 and 7,700 in settlement. Next week could stay bullish," he added.

"In the coming week there are some important data release such as IIP data for the Indian economy, retail sales & PPI for US economy, and all data are expected to improve in comparison to the previous data release so this would again help the markets to grow," he added.

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