Sensex closed above the 59K mark on Thursday, scaling fresh highs as a slew of government incentives boosted investor morale.
Wednesday’s package for telecom industry and the PLI scheme for autos indicate the government is no longer in auto pilot. Instead, it is trying to get kick start the pending reforms.
The Sensex closed at 59,141.16, up 417.96 points, or 0.71%, while Nifty was at 17,629.50, up 110.05 points, or 0.63%. All sectoral indices were in the green with Nifty PSU bank ticking up by 5.4 per cent, private bank by 2.6 per cent and FMCG by 1.2 per cent.
Among stocks, Vodafone Idea surged by 26 per cent.
The stock rally stems from a pick-up in consumer demand, low interest rates and improving prospects for the manufacturing sector. Equities may get another push after the GST Council meeting to be chaired by Finance Minister Nirmala Sitharaman on Friday. Other than various goods and services rate reviews, tax concession to 11 Covid drugs is on the cards.
Meanwhile, Reserve Bank of India Deputy Governor Michael Patra has indicated that inflation is likely to ease only gradually, adding that the outlook on growth and inflation will help determine the future course of monetary policy.