Sensex@72K: Bulls turn up the heat in December
Sensex closed above 72,000 for the first time, while the Volatility Index or VIX — a popular fear gauge — jumped 6% to 15.6, suggesting traders see risks of sharp swings in the market in the near term.
The Sensex gained 0.98%, or 701.63 points, to close at 72,038.43 after touching an all-time high of 72,119.85. The Nifty advanced 1%, or 213.40 points, to close at 21,654.75, off the record high of 21,675.75.
The Nifty Bank index rose 1.2% to a record closing level of 48,282.20.
Analysts expect the renewed bullish momentum to push the Nifty higher over the next two weeks led by banks. «In the next couple of weeks, the Nifty is likely to extend its gains to 22,000 levels while the Bank Nifty has a target of 48,800,» said Rajesh Palviya, senior VP-research, technical and derivatives, Axis Securities.
«Nifty retraced 100% to its recent correction, indicating the possibility of a bullish run.» The market run-up on Wednesday catapulted India's total market capitalisation to $4.3 trillion, or ₹361 lakh crore.
US, Europe Markets
«The new highs can be attributed to the overall momentum globally since the US, Asia, and other markets are also close to all-time highs,» said Narendra Solanki, head of fundamental research, investment services, Anand Rathi Brokerage.
US markets gained 0.4-0.5% on Tuesday, inching closer to their all-time highs. On Wednesday, the S&P 500 came within touching distance of its record close, before erasing gains.
