New Delhi:
The BSE Sensex continued its bullish trend for the second consecutive day on Wednesday as the index closed above 30,000 for the first time amid blue chips stocks trading fresh highs for the second consecutive day, reflecting the optimism in the US markets where Nasdaq Composite crossed 6,000 for the first time on Tuesday.
The bullish trend in the market is fuelled by domestic investors who pumped 1,000 crore into stocks on Wednesday even as foreign funds net sold shares worth 493 crore ahead of US President Donald Trump's tax reform proposals, due on Wednesday.
Experts said the near-term direction of the market would depend largely on the US tax plan announcements. If the Trump plan does not match up to expectations then markets can correct a bit.
So lets us look into the factors which shall serve as a catalyst for the Sensex soaring greater heights after scaling the 30000 level
US Tax rate policy
US Treasury Secretary Steven Mnuchin on Wednesday evening confirmed that the Trump administration's tax plan will call for a 15 percent cut in corporate rate, which is in line with Wall Street's expectations.
“Trump's tax plan could lead to the dollar strengthening, which need not be good for emerging markets,“ said Sanjeev Prasad, co-head at Kotak Institutional Equities.
Relief rally was triggered in the global markets after pro-centrist and market favourite Emmanuel Macron won the first round of French Presidential elections. Macron won first round vote with 23.91 per cent. Far-right nationalist and anti-euro candidate Marine Le Pen came in second with 21.42 per cent, almost exactly as earlier polls predicted.
Rupee strengthens against dollar
Rupee strengthened past the 64 mark against the US dollar for the first time since in over an year, tracking the gains in the global equity markets. The currency opened at 64.16 a dollar and touched a high of 63.96, a level last seen on 10 August 2015. It gained 6.4% in last 3 month becoming the best performing currency in Asia.
Indians Companies post strong financial results in Mar-April quarter
Seventeen companies are scheduled to report their financial results for the March-quarter including Axis Bank, GIC Housing Finance, Lakshmi Vilas Bank, Tata Sponge Iron, Sterlite Technologies, KPIT, and KSB Pumps.Most of the fundamentally strong companies have reported robust earnings and profitability levels in their march quarter results which have resulted in their shares trading at good levels on the stock market.
