Sensex record all time high closes on 105 points

Sensex recorded an all time high as it closed on 105 points at the end of trading on Wednesday. Continuing gains after Tuesday's 359-point rally following the Reserve Bank of India's policy, the 30-share index shot up by 104.96 points, or 0.50 per cent to 21,033.97 - eclipsing the previous record close of 21,004.96 acheived November 5, 2010.

 

Brokers said the trading  continued to be bullish on expectations of liquidity enhancement after RBI cut marginal standing facility (MSF) to 8.75 per cent in its monetary policy review on Tuesday.

 

Meanwhile the National Stock Exchange Index also rose by 30.80 points or by 0.50 percent 6,251.70 points at the close of trade. Traders concluded that the "Continued buying from FIIs and greater risk appetite of investors at higher levels lead to the rally at national stock exchange." Foreign funds have also continued to buy domestic stocks that has also lead to increase of bets and improved performances of the stock market.

 

Even though the BSE Sensex has hit the 21,000 mark on several occasions in the past it has been a good three years since the last time it did so. A key broking firm noted that record was achieved without retail participation.

 

It must also be noted that RBI’s steps for loosening liquidity had also instilled confidence among investors about the economy.