Stock market bellwether Sensex hit an all-time closing high of 20,893-mark on Thursday and analysts are bullish that the index may surpass its life-time peak of 21,206.77 on Friday on the auspicious occasion of Diwali.
According to equity analysts, there is enough liquidity in the capital market left out after Coal India's mega Rs 15,000 crore (Rs 150 billion) IPO and FIIs that are main drivers of local markets are upbeat post the second round of quantitative easing by the US.
"Going ahead, we expect good amount of buying coming in markets with further easing in US and expectation of easing in economies like Japan and further return of liquidity in local market after Coal India listing," SMC Global Research Head (Retail) Saurabh Jain said.
Following today's rally of 428 points, the Sensex is just 313 points away from its all-time intra-day peak of 21,206.77 points, scaled on January 10, 2008.
"It is a bright way to celebrate the festival of lights," said a broker. "Market ended the day with outstanding gains as investors brushed aside concerns on rising interest rates and welcomed the fresh monetary easing by the Federal Reserve," India Info- line Head of Research Amar Ambani said.
A one-hour muhurat or inaugural trading will be conducted on Friday to mark the beginning of Samvat 2067 on the occasion of Diwali.
"The economy is witnessing a smart growth. Dollar is also expected to weaken against the rupee in the coming year, which will further encourage more of the FII inflows. The Dalal Street would see a smart performance," Geojit BNP Paribas Financial Services Research Head Alex Mathews said.
