India's Stock Market Index Nifty Pushes Past 20,000, Creates historic Landmark

The Nifty reached Mount 20000 on Sept 11 as hard-nosed retail investors and domestic institutions continued to bet on equities, despite crude oil remaining close to $90 per barrel and foreign portfolio investors (FPIs) becoming a subdued bunch.

The broader index reached an all-time high of 20008.15, up 188.2 points, or 0.94 percent, on the day. It finished a few points short of the mark at 19996.35, up 176.40 points or 0.89 percent.

The Peer Sensex also rose 528 points to reclaim the 67000 level. The 30-share index rose 528.17 points, or 0.79 percent, to 67127.08. It rose 573.22 points, or 0.86 percent, during the day to 67172.13.

It was in November 1995 that Nifty 50 started its journey with a base value of 1000 — the index took 27 years, 10 months and 8 days to reach the 20000 mark.

The accomplishment came on the same day that Amfi data showed net inflows into equity mutual funds increasing to Rs 20,245.26 crore in August from Rs 7,626 crore the previous month, supporting the view that domestic participants are now contributing to the bull charge.

According to NSDL data, foreign investors have been net sellers of Rs 4,300 crore this month.

"The domestic markets started the day on a high note, buoyed by the historic agreement reached at the G20 summit, which instilled confidence among investors." Furthermore, expectations of lower inflation, fueled by lower vegetable prices, fueled optimistic sentiment, leading to a market rally," said Vinod Nair, head of research at Geojit Financial Services.