Amid a global rally, Indian markets scaled fresh peaks today as Nifty-50 climbed past its September 2024 record to hit 26,306.95 and Sensex crossed the 86,000-mark for the first time to reach 86,026.18.
India’s markets rose to new peaks on Thursday as Nifty-50 surpassed the September 2024 high to touch all-time high of 26,306.95 and Sensex surpassed the 86,000-mark for the first time to reach 86,026.18.
At 10:15 am, the Sensex rose 318.71 points (0.37 per cent) to reach 85,928.22 and Nifty-50 rose 71.10 points (0.28 per cent) to 26,278.40.
A surge in consumption in India driven by festivals and GST cuts, expectation of a rate cut by the US Federal Reserve, and a potential Ukraine-Russia peace deal are some of the reasons investors’ sentiment is high. Foreign portfolio investors have continued their buying streak in recent days.
The recent consumption-led surge in spending has made investors bullish about good quarterly earnings growth.
“The consumption boom witnessed in October will translate into impressive earnings growth. If the trend sustains, even with slight moderation after the festival season, earnings growth, going forward, will be good warranting a rally in the market. But there is no room for a sharp sustaining uptrend since valuations do not support that. Expectation of a rate cut by the Fed and a possible Russia-Ukraine peace accord have improved sentiments for equity markets globally,” Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, told Moneycontrol.
As for Sensex, Bajaj Finance, Bajaj Finserv, ICICI Bank, Larsen & Toubro, Asian Paints and Mahindra & Mahindra were among the biggest gainers.
But the trend is not unique to India. Instead, as Ponmudi R, CEO of Enrich Money, said global equity markets have extended their gains, buoyed by growing expectations of interest-rate cuts by the Fed.
“Major US indices —including the S&P 500, Dow Jones, and Nasdaq— posted another session of solid advances as softer Treasury yields and renewed policy optimism strengthened risk appetite. This upbeat sentiment has carried into today’s global trade, with Asian markets opening higher,” Ponmudi told PTI.
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