Sensex Hits Record High on Continued Reform Push; IT Stocks Rally

Mangalore Today News Network

New delhi,October 30, 2014  : Indian stock markets hit an all-time high on Thursday with the Sensex rising over 250 points or nearly 1 per cent and the Nifty advancing over 70 points.

Continued reform push by the government has also aided sentiments, traders say.

Yesterday evening, the government relaxed rules for foreign direct investment in construction development. The new rules make it easier for foreign companies to invest in India and many projects will now qualify for FDI through automatic route (no FIPB clearance will be required), analysts say.

A lower-than-expected increase in wheat support prices also aided sentiment, analysts say.

The big push today came from IT stocks, which rose sharply after the US Federal Reserve overnight expressed optimism about economic recovery. India’s IT sector is heavily dependent on the US economy for growth.

The IT sub-index led Thursday’s rally, rising 2.6 per cent as compared to the 0.9 per cent rise in the broader Sensex.

HCL Tech was the top Nifty gainer, up 4.7 per cent. Tech Mahindra advanced 4.3 per cent.

Shares in realty and construction companies also rallied with DLF advancing 3.6 per cent.