Sensex record high is led by positive govt initiatives, says BSE CEO

The Bombay Stock Exchange (BSE) CEO Ashish Chauhan on Tuesday remarked the historic high of the Sensex as a progressive day, which will going forward, enable the markets to touch new heights.

"The way we look at Sensex is the steps taken by the government of India have been phenomenal over last few couple of years. Demonetisation, Jan Dhan Yojana, Aadhaar card linking, GST, bankruptcy code are many more steps taken by the govt of India are going to ensure that India is going to move forward with a bigger acceleration," said Ashish Chauhan while hailing the Goods and Services Tax (GST) initiative taken by the Modi-led Government.

"Fiscal deficit is one of the components on which people are deciding what is actually happening. The new framework of GST and others are actually going to increase government's ability to raise funds, going forward. And that is what is being discounted currently," added Chauhan.

"In the immediate situation you may have a little bit of slippages here and there, but there is going to be improvement in the long term in government's ability to collect funds and that's where we have seen even S&P improving India's rating. So, that is where most people are kind of discounting the immediate issues and going forward they actually expect better sort of fiscal deficit also narrowing and other things," he stated after listing greater acceleration points in the market.

Earlier on Tuesday, the markets surprised the street by creating history as the Sensex surpassed Mount 34,000 for the first time, to hit a fresh record high of 34,005.37, while the Nifty50 rose to a lifetime high of 10,515.10.

With almost 40 stocks rising in the range of 30 percent to 60 percent from October 25 to December 22nd, 2017, over 347 stocks gave positive returns in the S&P 500 index.