Sensex breaches 85K mark, Nifty 26K
Driven by strong investor sentiment and positive global cues, the Indian stock markets hit fresh all-time highs today. Nifty 50 and Sensex surged to a record level of 26,011.55 points and 85,163.23 points, respectively, marking an unprecedented milestone for the benchmark index, reflecting robust buying across sectors.
After surging to fresh all-time highs led by foreign institutional investor (FII) buying flows, it pared their gains to close on a muted note. At closing, the BSE Sensex was down 14.57 points, or 0.02, at 84,914.04. Mirroring Sensex’s moves, Nifty 50 touched a fresh record high, while also breaching the psychological level of 26,000. At close, the 50-stock index was marginally up by 0.01 per cent, at 25,940.40.
“Several factors contributed to this rally, including strong corporate earnings, resilient macroeconomic indicators, and increased FII inflows. The market momentum was further bolstered by a bullish outlook on India’s economic growth, supported by expectations of structural reforms and investor optimism around the Indian economy’s ability to withstand global headwinds, such as inflationary pressures and geopolitical uncertainties,” said Vikram Kasat, head (advisory), Prabhudas Lilladher (PL Capital).
According to analysts, Indian equity indices Nifty50 and Sensex have witnessed a strong bullish momentum, with gains of nearly 18-19 per cent year-to-date.
According to them, more recently, the US Federal Reserve’s (FOMC) decision to implement a substantial rate cut of 50 basis points — bringing rates to the 4.75-5.00 per cent range — has further bolstered risk assets globally.
Post decision, the banking and IT sectors, which have the highest weightage in Sensex, emerged as key beneficiaries.
Despite elevated valuations, the market remains attractive, supported by potential increased foreign inflows and robust monthly SIP contributions. “The market appears to be in a ‘one step back, two steps forward’ phase, consistently trading above key moving averages. Notably, the 21-day Exponential Moving Average (EMA) has provided strong support, offering frequent buying opportunities during market corrections. Given these strong technical and fundamental indicators, we anticipate Sensex reaching the 1,00,000 mark by the first half of next year. Investors are advised to adopt a “SIP on DIP” strategy to capitalise on market dips while benefiting from the ongoing bullish trend,” said Vishnu Kant Upadhaya, AVP (Research and Advisory), Master Capital Services Ltd.
