Sensex kisses 24k

The sensex set a new milestone for the fastest 1,000-point gain ever and, in the process, crossed the 24,000-mark for the first time.
The record run was spurred by a renewed rush for Indian stocks by foreign fund managers ahead of a possible win for the market-friendly BJP in the Lok Sabha elections. India’s benchmark index, which was around 23,000 on Monday, scaled a lifetime high of 24,069 on Tuesday before profit-booking forced it to close at 23,871, still up 320 points over its previous close.
Earlier, on May 18, 2009, the sensex had gained 2,111 points to rally past the 14,000-mark but that was not the first time the index had gone beyond that level. That gain came the day after the UPA returned to power in the previous Lok Sabha election. The nifty ended the day 95 points higher at 7,109, another closing high.
The rupee surged 37 paise to end at a nine-month high of 59.68 against the dollar Investors’ wealth soars
Tuesday’s buying momentum too pole-vaulted investors’ wealth, measured by the BSE’s market capitalization, to a new record peak at Rs 79.5 lakh crore.
The day’s rally came on the back of a Rs 2,026-crore net FII buying, following up on their Rs 2,500-crore net inflows in the two previous sessions. However,domestic investors are suddenly turning cautious, indicating there could be room for disappointment.
Given the strong run-up in the market leading up to the poll results, there are some brokers and analysts who believe that post-results on Friday, the surge may not be as spectacular.
Although most exit polls showed that the BJP-led NDA will get about 272 seats needed for forming the government, some investors are cautious because such polls have a history of being off the mark when compared to actual results. Other than the chances of the NDA getting less seats than required to form a government, some market players are also cautious about retail inflation.