The BSE’s Sensex scaled a new high on Monday, with the benchmark index crossing the 70,000-mark for the first time amid investors’ optimism about the economy’s resilience and as foreign portfolio investors (FPIs) continue to pour money into the domestic equities.
After opening at 69,825.6, the Sensex touched a record high to 70,048.9 during the early morning trades. The NSE’s Nifty 50 which opened at 20,965.3, surged to all-time high of 21,026.1.
The rally in the domestic market is also driven by the last week’s upward revision of the GDP forecast to 7 per cent for FY’24 from 6.5 per cent by the Reserve Bank of India, expectation of political stability after the 2024 Lok Sabha election following the Bharatiya Janata Party (BJP) victories in three out of five recently conducted assembly polls, fall in crude oil prices and improvement in corporate earnings.
So far in December, the Sensex and the Nifty 50 have risen by around 3.5 per cent. “Global and domestic cues favour continuation of the ongoing rally in the market despite high valuations. FIIs turning buyers, strong DII inflows, exuberant retail investors and a thriving IPO market supported by strong economic fundamentals can sustain the rally in the short run ignoring the high valuations,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.