Sensex breaches 16000-barrier
19 Sep 2007
The benchmark BSE Sensex has hit a new all time high of 16,116.73, crossing the previous peak of 15,868.85 on the landmark boosted by the US federal reserve having cut the Fed Funds rate by 50 bps to 4.75 per cent.
At 11:10 a.m., the 30-share BSE index moved almost 3-per cent by 462.40 points, to 16,131.52, after rising to a record 16,139.05.
"It
is on long-expected lines," analyst Vijay Bhambwani, CEO, BSPL India, told
domain-b, cautioning, "But tomorrow you may see a mild cool-off."
The
cut in the Federal Funds rate was accompanied by a matching half-point cut in
the discount rate to 5.25 per cent (See: Wall
Street soars as Fed cuts interest rate).
The news of the Fed''s rate cut triggered a massive rally in the US stock markets with indices registering their highest single-day rally in several years with the Dow rising 335 points to 13,739.points. The S&P 500 rose 43 points to 1,519, the Nasdaq surged 70 points to rise to 2,651.
Oil climbed above $82 a barrel near a record the previous day on the news of the Frd''s rate cuts. while the dollar sank to a 15-year low against a basket of currencies pushing its trade-weighted index to 79.091, its lowest since 1992, but recovered to 79.229.
The rise also boosted Asian markets and the Sensex crossed 16,000 points with several analysts bullish on a strong expectation of the market scaling newer peaks sooner than expected.
