Reasons for the Sensex to hit 30,000 before the Union Budget - Fusion - WeRIndia

Reasons for the Sensex to hit 30,000 before the Union Budget

Sensex crosses 30000 points

Analysts expect that the Sensex may cross 30,000 points before the presentation of the Union Budget 2015-16 on February 28. The reasons for this assumption are as follows:

  1. The decision of the European Central Bank to pump $1.3 Trillion on a bond buying programme on January 22 improved the market sentiments across the globe.
  2. The RBI has already reduced the interest rates. The expectation of RBI policies in the early February would increase the market sentiments.
  3. Crude oil prices have been falling since June 2014 and the drop is nearly 60 percent. The speculation of further drop in these prices helps the Sensex to cross 30,000 points mark.
  4. The hope on inflation would remain for a longer time promoting the growth of stock market.
  5. The high expectations from the government reforms in the coming Budget will also enhance the growth of stock markets.
  6. The anticipation of huge FII inflows into the country helps the Sensex rally nearer the 30,000 points.

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