Market expert attributes jump in Sensex to local reasons
With the Sensex crossing the 19,000-mark for the first time in nearly two-months in early trade, a Mumbai-based market expert on Thursday attributed the jump to local reasons like the end of the Parliament impasse and the foray of FDI in retail, insurance and aviation.
"I would attribute this jump of 550 points more to local reasons than international. The impasse in the Parliament has been done away with and it seems that market believes that the 24 bills, which were selected to be tabled in the parliament during the winter session, I think most of them will be tabled and passed as well," said Sunil Shah, a market expert.
"So, the bills regarding FDI in retail, aviation, insurance, market is quite hopeful that they will go through and that is the reason that market is up and above 19,000," he added.
Shah also cited a few international reasons for this jump.
"The BSE Sensex is up by 225 points. Well, if you see last two trading sessions, BSE Sensex has almost gone up by 550 points. So, there are a few reasons for it. First of all, day before yesterday, Moody gave a very positive statement regarding India. US market and US macro numbers were very positive, so people have moved out from gold to equity," said Shah.
"Today, if you see international market; Asian markets so far have opened by a huge positive margin. So, our market has reflected that. These are the international reasons," he added.
The BSE Sensex opened on a positive note on the back of positive cues from global markets and the hope that Parliament may function after the United Progressive Alliance (UPA) Government seemed to be going with voting on FDI in retail.
After opening 105 points, or 0.6 per cent higher, the Sensex gathered further momentum, to stand a hefty 250 points, or 1.3 per cent in the green, at 19,092 in afternoon deals.