Sensex hits 30000 for the first time
As soon as the RBI announced rate cut in Repo rate, Sensex hits the fresh life time high level of 30000. This repo rate cut has also made Rupee stronger, a one month high. Repo rate has been cut by 0.25 bp to 7.5%. Rupee rose to 61.650. But the bond market fell heavily. It is expected that Rupee will become stronger in the days to come. Banking, capital goods and real estate stocks were traded heavily post budget.
My prediction is that Sensex may very soon before the tenure of this government may touch 50,000 and it will not be shocking at all.
The development at ground level and a strong sign by finance minister to curb black money and inclusion of more and more blocked funds in economy will give way for further rise in liquidity.
The same thing is done by RBI, by altering the rates RBI has increased the liquidity in economy and this extra liquid fund will come to stock market in direct or indirect way.
Another thing is that RBI has lowered the rates after a long time. Reduction in rates shows the confidence in economy. Reduction in rates shows that inflation is coming down and this is a good news.
As per market experts Sensex will gain more points in future. It will be in increasing trend.