Investors cautioned against euphoria

As the market barometer Sensex closed above the 30,000-mark for the first time on Wednesday, the BSE cautioned investors not to be carried away by the “euphoria” and refrain from investing in penny stocks.

BSE chief executive Ashish Chauhan appealed to investors to invest only in good companies or opt for the mutual funds’ route to invest in the markets.

The benchmark Sensex scaled the 30,000-mount for the first time to close at 30,133.35, taking the BSE market capitalisation to a record Rs 124.83 trillion. The broader Nifty also continued its rally, scaling a new peak of 9,351.85.

The rally was driven by hopes of earnings growth and continued buying by FPIs and domestic investors.

“The BSE Sensex reaching the 30,000-mark on Wednesday was a much-awaited milestone. This was achieved on the back of strong economy and investments from both FPIs and local institutions. This is a great moment for the nation and BSE. As an exchange, we advice investors not to be carried by the 30,000 points euphoria. We would also advice investors not to invest in penny stocks and don’t fall prey to fly-by- night operators,” Chauhan said after celebrating the milestone at the Dalal Street towards the end of the trading hours.

“However, our good times are yet to come and this is just the beginning. Next few years will be very decisive,” he added.