Sensex hits 26,000; Nifty at new peak - BSE sensex and NSE Nifty both

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BSE sensex and NSE Nifty both hit record highs on Monday morning, with sensex crossing the 26,000 mark for the first time in history on Dalal Street's optimism about the Budget and also expectations about divestments of a host of PSUs over the next few months.

In This Pic : Sensex

Pic Courtesy : BCCL

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At 10am, the sensex was up 112 points at 26,074 while Nifty was up 27 points at 7,779. The rise is also helped by continuous FII buying.

In This Pic : Sensex

Pic Courtesy : PTI

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Investors are optimistic that the forthcoming Budget on July 10 will aim at fiscal consolidation as the deficit and inflation are still at higher levels than warranted. They also expect divestment to pick up pace.

In This Pic : Sensex

Pic Courtesy : BCCL

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A recent Reuters story said that the government is expected to target nearly $12 billion from divestments this fiscal. FIIs have net pumped in nearly $10 billion in the equity market while the corresponding figure for the debt market is a little over $10 billion.

In This Pic : Sensex

Pic Courtesy : BCCL

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Market players expect the pace to quicken in the second half of the year. Corporate results are also expected to determine the market's direction over the next few weeks, dealers said.

In This Pic : Sensex

Pic Courtesy : BCCL