Sensex Today: Benchmark equity indices continued their rally on Monday, with the BSE Sensex breaching the 65,000 mark for the first time ever, propelled by bullish global market trends and foreign fund inflows.
The S&P BSE Sensex settled at a fresh closing high of 65,205, soaring 486 points or 0.75 per cent. The index hit an intra-day record high of 65,248. The broader Nifty50, meanwhile, zoomed 141 points, or 0.73 per cent, to shut shop at 19,330. The index, too, scaled an all-time high of 19,336 in the intra-day trade.
In the broader market, the Nifty MidCap 100 index gained 0.28 per cent, while the Nifty SmallCap index ended 1.3 per cent higher.
Among sectors, the Nifty PSU Bank index advanced over 3.7 per cent, followed by the Nifty Metal index (up 1 per cent), and the Nifty Bank and FMCG indices (up 1 per cent each).
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The ongoing rally in global stock markets is primarily driven by the surprising and unexpected strength of the U.S. economy ( 2 per cent GDP growth in Q1 23), in spite of the savage 500bp rate hike by the Fed. Global markets which had discounted a US recession by mid-2023 have been proved wrong and the markets are now compensating for the excessive pessimistic discounting in 2022.”
“An important point of distinction between the rally in the US and in India is that the US rally is primarily led by 8 tech stocks while the Indian rally is more broad-based. Sustained FPI flows (Rs 47148 crores in June) are the main driver of the rally in India. The recent surge in FPI inflows has been triggered by the recent ‘Sell China, Buy India’ strategy of the FPIs which, in turn, is being influenced hugely by the anti-China attitude/policy evolving in the US and the developed world. Since the strength of the market momentum is high, the rally can continue; but valuations are getting stretched,” he added.
Global Cues
Asian shares edged higher on Monday as demand for tech stocks buoyed Japan’s market, while a data-packed week promises to be pivotal in the outlook for the Chinese economy and US interest rates.
Tokyo stocks opened higher on Monday, after Wall Street rallied on signs of inflation cooling. The benchmark Nikkei 225 index was up 1.30 per cent, or 431.73 points, at 33,620.77 in early trade, while the broader Topix index added 1.04 per cent, or 23.74 points, to 2,312.34.
Wall Street’s three major indexes advanced solidly on Friday, with the tech-heavy Nasdaq boasting its biggest first-half gain in 40 years as inflation showed signs of cooling while Apple closed with a $3 trillion market valuation for the first time.
Oil prices slipped in early Asian trade on Monday as global macroeconomic headwinds and possible further interest rate hikes from the U.S. Federal Reserves offset forecasts of tighter supplies amid OPEC+ cuts.
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