Mumbai: The benchmark equity index, Sensex, surpassed its previous lifetime high during the early trade Thursday. NIFTY, meanwhile, closed at 11,881 inching closer towards its previous all-time high.
The Sensex peaked at 40,329 after the US Federal Reserve slashed it interest rates for the third time this year. This comes after the Indian government took several concrete steps to comb at a sharp slowdown in the Indian economic activity recently.
The Modi government among other sector specific measures reduced the corporate tax which helped several companies report better than expected results for the second quarter ending September.
Besides, global cues have also been favourable for the past few weeks. Global markets are bullish on US-China trade talks and the Brexit issue.
The Federal Reserve on Wednesday cut interest rates for the third time this year in a move to ensure the US economy weathers a global trade war without slipping into a recession.
However, it has signaled its rate-cut cycle might be at a pause.
It must also be stated that the Sensex plunged after it peaked July 4 in anticipation of a corporate friendly Union Budget.
However, contrary to expectation Finance Minister Niramala Sitharaman introduced unpopular taxes like cess on Foreign Portfolio Investment, which caused massive outflow of foreign funds and sharp decline in stock market.
(PNN & Agencies)
