Sensex crosses 70,000 mark for the first time
On Monday, India's stock market saw a modest gain, with the BSE Sensex crossing 70,000 for the first time, driven by banking, financial, and IT stocks. At the time of writing, Sensex traded 210 points or 0.3% higher at 70,036, while the Nifty50 was at 21,018, up 50 points or 0.24%. This growth is backed by strong economic data, lower crude oil prices, a positive global interest rate outlook, renewed foreign inflows, and ongoing support from domestic mutual fund investors.
Top gainers and losers
On the 30-share BSE index, Kotak Mahindra Bank, L&T, SBI, ITC, HCL Tech and TCS were among the top gainers. Meanwhile, GTL Infrastructure, Inox Wind, Sandur Manganese, IFCI, and Strides Pharma Science surged by up to 8%. On the other hand, Safari Industries (India), Adani Green Energy, KIOCL, and Adani Energy Solutions saw declines of up to 4.7%.
Benchmark indices see best weekly rise in three years
Last week, the benchmark indices achieved a sixth consecutive week of gains, marking their strongest streak of weekly increases in three years. In the past week, the collective market capitalization of seven among the top 10 most valuable companies increased by Rs. 3.04 lakh crore. This upswing was led by HDFC Bank and LIC, which emerged as the top gainers, indicating a positive trend in the stock market overall.
Why is the market rising despite high valuations?
"Global and domestic cues favor the continuation of the ongoing rally in the market despite high valuations," told VK Vijayakumar, Geojit Financial Services to the Economic Times. "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," Vijayakumar added.
