Benchmark BSE Sensex crossed the 63,000 mark for the first time on Wednesday, extending its winning momentum to seventh day due to a largely positive trend in global markets and constant foreign fund inflows. The broader NSE Nifty also hit a record high at around 18,800.
Extending gains from the previous session, Indian stock indices rose on Tuesday morning and hit fresh lifetime highs. The Indian stock markets got the boost from strong inflows of foreign funds, relative strength of the Rupee, and a clue from the US Federal Reserve on slowing down on policy rates. The minutes of the US Fed’s latest monetary policy review meeting said a considerable majority of members judged that reducing the pace of increase in policy rates would possibly “soon be appropriate”.
Sensex and Nifty have made record highs after nearly a year. Their last highs were seen in October 2021, after which the markets began to move sideways and after six months corrected sharply.
Market observers have mixed responses to the jump in Indian market indices. Some believe that the undertone of the Indian market will remain bullish despite global headwinds with some intermittent corrections till the forthcoming Union Budget. Others suggest the global market construct to be not so favourable for the rally to continue unabated, and see the high valuation to be turning into a matter of concern.