On Day 1 of new financial year, BSE Sensex hits record 39,000 mark

Sensex, the benchmark index of the Bombay Stock Exchange, breached the 39,000 mark for the first time ever. Surging over 300 points, the Sensex created new record on the day 1 of the new financial year. Led by buying interest in metal, PSU banks, auto and capital goods shares, S&P BSE Sensex surged over 300 points to record high of 39,017.06 and the NSE Nifty 50 Index surpassed 11,700 level for first time since September last year.

In opening trade, the BSE benchmark Sensex rallied over 265.54 points to 38,938.45 on Monday, driven by sustained buying mainly in metal, auto and financial stocks amid positive global cues.

On the Sensex chart, Vedanta, Tata Steel, Tata Motors, Mahindra and Mahindra and ICICI Bank led the rally. The broader NSE Nifty was higher by 62.60 points at 11,686.50 in early deals.

Asian markets were trading positively amid optimism over China-US trade talks and expansion in manufacturing activity in China in March.

The 30-share Sensex opened on a positive note at 38,858.88 and rose to a high of  38,960.28 in early deals. The gauge, however, pared some gains and was trading at 38,938.45, higher by 265.54 points. Similarly, the NSE Nifty started off on a high note at 11,665.20 and hit a high of 11,699.70 in opening deals.

In Asia, South Korea's KOSPI rose 1 per cent, Japan's Nikkei gained more than 2 per cent and Hong Kong's Hang Seng Index climbed 1.62 per cent. China and the US gave signs of some progress in their last week's discussions on the trade tariff tussle, with another round of talks scheduled to be held this week in Washington.

The BSE Sensex had risen over 127 points to close at 38,672.91 on Friday -- the last trading day of fiscal 2018-19 during which the benchmark posted a rise of 17.30 per cent. The broader NSE Nifty closed at 11,623.90, capping off the financial year with a gain of 14.93 per cent.

Investors' wealth zoomed Rs 8.83 lakh crore during 2018-19, with the market capitalisation (m-cap) of BSE-listed companies reaching Rs 1,51,08,711.01 crore.  

In the election season, the Sensex is expects lots of volatility. Experts believe the overall movement for the benchmark Sensex may also end up in 2019 at around 5 per cent, the same as 2018. "The first few months of 2019 are likely to be volatile as it will be very event-heavy. Markets like certainty and continuity and post the events, markets should stabilise," Essel Mutual Fund CEO Viral Berawala had said. Anand Shah, Deputy CEO and Head of Investment at BNP Paribas Asset Management India, said, "While the first half of 2019 will have multiple events which will keep markets more focused on macro variables, we believe the second half will see micros take centre stage."

Effect of elections in the short-term with risk of populist measures and uncertainties in the global market may also weigh on the market performance, Vinod Nair, Head of Research, Geojit Financial Services said.  

(With agency inputs)