Indian Stock Markets Reach New Heights After 14-Month Gap
Mumbai's benchmark indices Sensex and Nifty surged to record levels on Thursday, driven by expectations of US interest rate cuts and strong foreign investment inflows.
Mumbai: India’s stock markets achieved a significant milestone on Thursday as both major benchmark indices climbed to fresh all-time highs, marking their first record peaks in over a year.
The BSE Sensex rose by 416.67 points during morning trading to reach a new high of 86,026.18. This surpassed its previous record of 85,978.25, which was set on September 27, 2024. Similarly, the NSE Nifty gained 101.65 points to touch 26,306.95, breaking past its earlier peak of 26,277 from the same date in September.
This rally builds on strong momentum from the previous trading session, when the Sensex jumped 1,022.50 points (1.21%) to close at 85,609.51, while the Nifty climbed 320.50 points (1.24%) to finish at 26,205.30.
Top Performers and Laggards
Among the Sensex companies, Bajaj Finance led the gains, followed by Larsen & Toubro, Bajaj Finserv, Asian Paints, HDFC Bank, and Hindustan Unilever. However, some stocks faced selling pressure, including Eterna, UltraTech Cement, Trent, and State Bank of India.
Global Market Trends
The positive sentiment in Indian markets mirrors the upward trend across global exchanges. Asian markets showed strength on Thursday, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all trading higher. US markets also closed in positive territory on Wednesday.
Investment Flows
Foreign Institutional Investors demonstrated strong confidence in Indian equities, purchasing shares worth Rs 4,778.03 crore on Wednesday. Domestic Institutional Investors were equally bullish, buying stocks valued at Rs 6,247.93 crore during the same session.
Expert Analysis
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, explained the rally: “Expectations of a rate cut by the Fed and a possible Russia-Ukraine peace accord have improved sentiments for equity markets globally.”
Ponmudi R, CEO of Enrich Money, added: “Global equity markets have extended their gains, driven by growing expectations of interest-rate cuts by the US Federal Reserve. Major US indices including the S&P 500, Dow Jones, and Nasdaq posted solid advances as softer Treasury yields and renewed policy optimism strengthened risk appetite.”
Commodity Markets
Meanwhile, Brent crude oil prices edged lower, falling 0.57% to USD 62.77 per barrel, reflecting a slight pullback in global energy markets.
The sustained rally in Indian stock markets reflects growing investor optimism about global economic conditions and domestic growth prospects, supported by robust institutional buying activity.
