The 30-share BSE Sensex reached its record close of 30,248. The index has surpassed its previous record closing of 30,133.35 reached on April 26. It also surpassed its intra-day peak of 30,184.22 recorded on April 27 to hit a fresh intra-day high of 30,271.60.
The NSE index Nifty has breached the 9,400-mark for the first time. The NSE index registered a record high of 9,415, surpassing its previous milestone of 9,377 reached on May 5.
The indices have settled at their respective closing highs after the IMD’s new monsoon forecast has predicted that India is likely to receive higher monsoon rainfall as the concern over the El Nino weather condition has eased. Earlier, IMD had predicted that this year’s monsoon rains will be at 96% of the 50-year average of 89 cm. The new forecast has raised the sentiments of the stock market as the prospects of higher agricultural and economic growth is brighter. This has resulted in the shares of consumer goods and agriculture-dependent companies to rise.
Stock Market Index
A share market Index shows how a specified portfolio of share prices is moving in order to give an indication of market trends. It is a basket of securities and the average price movement of the basket of securities indicates the index movement, whether upwards or downwards. BSE Sensex is one index. The BSE SENSEX is a free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange.