Surprise stimulus from Bank of Japan lifts all markets; Sensex up 519 pointshttps://indianexpress.com/article/business/market/surprise-stimulus-from-bank-of-japan-lifts-all-markets-sensex-up-519-points/

Surprise stimulus from Bank of Japan lifts all markets; Sensex up 519 points

Japanese central bank announces ¥30 trillion increase in bond purchases annually

Sensex zoomed 519.5 points or 1.9 per cent to close at a record 27,865.8, while the NSE Nifty surged by 153 points, or 1.87 per cent to end at a new peak of 8,322.20. Reuters
Sensex zoomed 519.5 points or 1.9 per cent to close at a record 27,865.8, while the NSE Nifty surged by 153 points, or 1.87 per cent to end at a new peak of 8,322.20. Reuters

Global markets rallied and the benchmark Sensex hit an all-time high on Friday after Japan unexpectedly increased its monetary stimulus just days after the US Federal Reserve wound down its years-long package of incentives.

Sensex zoomed 519.5 points or 1.9 per cent to close at a record 27,865.8, while the NSE Nifty surged by 153 points, or 1.87 per cent to end at a new peak of 8,322.20.

The rise came after the Bank of Japan board voted to accelerate purchases of Japanese government bonds to increase its holdings annually by ¥30 trillion to ¥80 trillion ($725 billion) and to triple its purchases of exchange-traded funds and real-estate investment trusts, following which foreign institutional investors (FIIs) pumped in funds into Indian equities.

The BSE benchmark Sensex has gained 4.2 per cent or 1,113 points over the last four trading sessions to inch closer to the next milestone of 28,000. The overall market cap at the BSE jumped to Rs 96,84,691 crore on Friday.

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The FII inflow that largely remained subdued in October, took off over the last two trading sessions as they pumped in a net of Rs 3,011 crore between Thursday and Friday.

Experts say that while additional liquidity is pushing the markets, it remains to be seen as how some economies that are not doing well come out of the slowdown.