Sensex crosses 32,000

The sensex rose 232.6 points or 0.7% to close above the 32,000 milestone for the first time ever while the broader Nifty ended at 9,892 points, a 0.8% increase. The indices hit record highs on hopes of a rate cut by the Reserve Bank of India on the back of low inflation.Global stock markets also provided some tailwind after a US Fed statement easing fears of higher rates. The BSE sensex capped its run of five successive highs in six trading sessions as a wave of liquidity lifted its constituent heavyweights like ITC, Reliance, Larsen and Toubro and ICICI Bank. The market capitalisation of BSE stocks rose to Rs.130 trillion. But the fact that the rally is being driven by a bunch of large cap stocks was evident.

Interestingly , the mid-cap and small-caps stocks, which had a stellar run on the bourses, have fallen behind their large-cap peers over the past few months. The BSE mid-cap index as well as the small-cap index have gained at a slower pace than the sensex in the three-month time frame.

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