Mumbai: The BSE Sensex soared 310 points on Wednesday to close above the 35,000-level for the first time.
The wider Nifty too finished at its fresh life-time high on unabated buying.
The 30-share Sensex surged 310.77 points, or 0.89 percent, to end at 35,081.82, breaking its previous record of 34,843.51 reached on January 15.
It took the benchmark just 17 sessions to scale the 35,000-mark from the 34,000-level reached on December 26.
The broader Nifty jumped 88.10 points, or 0.82 percent, to close at 10,788.55, surpassing its previous record of 10,741.55 hit on January 15.
It also touched an intra-day record of 10,803.
Here are five reasons that led to the stock market rally
- According to market observers, optimism around quarterly corporate earnings, along with a surge in banking, healthcare and IT stocks, lifted the equity indices to trade at fresh high levels.
- The IT sector continues to trade at 52-week highs with upgrades post Q3 FY18 results and positive comments from the management with improvement in IT spending and budgets owing to new initiatives like artificial intelligence and automation. Shares of IT companies such as Infosys and TCS continued to attract buyers and rose up to 2.61 percent.
- Sentiments got a boost after the government today lowered the additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore estimated earlier. Banking stocks ratcheted up after the Centre today lowered the additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore estimated earlier.
- Analysts said strong liquidity in the market following unabated buying by foreign funds inflows and encouraging Q3 earnings by some companies lifted the mood.
- Strong gains in the rupee after forex inflows also improved the market sentiment. The US dollar declined against the rupee at Rs 63.88/89 per dollar at the close of the Interbank Foreign Exchange (forex) market.