The Indian stock market today hit record highs, with the Sensex reaching 67,771.05 and the Nifty touching 20,167.65 for the first time.
2
Strong macroeconomics
Robust macroeconomic indicators, such as a decline in CPI-based inflation to 6.83% in August and soaring industrial output of 5.7% in July, fuel investor optimism.
3
US Fed rate hike pause
Market observers expect the US Federal Reserve to hold off on interest rate hikes, despite slightly higher US inflation.
4
Technical factors
Technical analysis reveals that the Nifty recently crossed the psychological milestone of 20,000, signaling bullish sentiment.
5
Increased retail investor participation
A surge in retail investors is also driving the market rally, with Demat accounts now exceeding 12 crore, nearly tripling from around four crore in 2020.
6
FOMO
Retail investors, motivated by the fear of missing out, are actively participating in this trend by investing in small- and mid-cap stocks without conducting thorough research.