Sensex and Nifty 50 Hit Record Highs Amid Robust Economic Data

Sensex and Nifty 50 Hit Record Highs Amid Robust Economic Data/Agencies

MINT | June 13, 2024 | 04:55 PM IST | Breaking News | Follow on Google News

Sensex and Nifty 50 Hit Record Highs Amid Robust Economic Data

Sensex and Nifty 50 Hit Record Highs Amid Robust Economic Data

Key Highlights:

1. Sensex and Nifty 50 reach fresh record highs due to strong economic indicators.
2. Sensex hit 77,145.46; Nifty 50 reached 23,481.05.
3. Market sentiment bolstered by easing inflation and policy continuity.

Indian stock indices, Sensex and Nifty 50, reached new record highs on Thursday, June 13, buoyed by favorable macroeconomic data, indicating strong medium to long-term growth prospects for India’s economy.

During the session, Sensex hit an all-time high of 77,145.46, while Nifty 50 peaked at 23,481.05. Eventually, Sensex closed at 76,810.90, up 204 points or 0.27%, and Nifty 50 settled at 23,398.90, up 76 points or 0.33%, marking new record closing highs.

The rally extended beyond the frontline indices, with the BSE Midcap and Smallcap indices also reaching record highs of 45,576.53 and 50,707.92, respectively. The BSE Midcap index closed 0.79% higher at 45,521.86, while the Smallcap index ended up 0.89% at 50,678.94.

The market capitalization of firms listed on the BSE surged to nearly ₹431.7 lakh crore from ₹429.3 lakh crore in the previous session, yielding investors an additional ₹2.4 lakh crore in a single day. Nearly 300 stocks, including Bharti Airtel, Tata Steel, Cipla, and UltraTech Cement, hit their 52-week highs on the BSE.

Five Key Factors Underpinning Market Sentiment:

1. Easing Inflation:
   India’s annual retail inflation dropped to a 12-month low of 4.75% in May from 4.83% in April. The US also saw a decline in inflation, with its annual CPI falling to 3.3% in May. This easing of inflation has improved market sentiment, particularly for banking stocks.
2. Policy Continuity:
   The Nifty 50 has been setting records since the formation of the BJP-led NDA government. Investors expect continued political stability and policy reforms, which has bolstered market confidence.
3. Rate Cut Expectations:
   With inflation cooling, experts anticipate a rate cut by the RBI in October. There is also speculation about a possible rate cut in the US by year-end, further supporting market optimism.
4. Above-Normal Monsoon Prospects:
   The India Meteorological Department predicts an above-normal monsoon, crucial for the agricultural sector and overall economic growth. Timely and adequate rainfall can help ease inflationary pressures and support crop production.
5. Strong Institutional Buying:
   Both foreign and domestic institutional investors have been actively buying Indian equities, adding to the market’s upward momentum.

These factors collectively suggest a positive outlook for the Indian stock market, with investors closely watching upcoming policy decisions and economic developments.

MINT