Indian Stock Market Hits Record Highs: Sensex Surpasses 80,000, Nifty Reaches New Peak

Indian Stock Market Hits:Record-Breaking Rally: Indian Benchmark Indices Hit All-Time Highs

Indian Stock Market Hits: Mumbai, July 4, 2024 – Indian benchmark indices continued their record-breaking streak on Thursday, with the Sensex and Nifty both reaching new all-time highs. The Sensex rose by 406 points, closing at an unprecedented 80,392.64, while the broader Nifty gained 114.5 points, finishing at its peak of 24,401.

The Sensex breached the 80,000 mark for the first time on July 3, marking a historic milestone for the Indian stock market. Just last week, on June 27, the Nifty surpassed the 24,000 level for the first time. This impressive growth reflects a significant upward trend over the past 16 years, with the Sensex having risen from 8,800 on the day Lehman Brothers collapsed to its current level, despite the severe dip to 26,000 during the COVID-19 pandemic.

“Crossing the 80,000 mark is a monumental achievement for the Indian stock market,” commented Shrikant Chouhan, Head of Equity Research at Kotak Securities. “It highlights the long-term resilience and potential of equity markets, emphasizing the importance of patience and confidence in investment strategies. Given the current domestic macros, we advise continued systematic investment in equities with a long-term perspective.”

The recent surge in the market has been driven by supportive global data and positive monsoon progress in India. In the US, softened bond yields have bolstered the Federal Reserve’s case for potential rate cuts this year due to weaker economic data. Lower bond yields and expectations of interest rate cuts in the US are attracting Foreign Portfolio Investors (FPIs) to actively participate in the Indian market.

Despite the high valuations of the Indian market, experts predict that the current bull run will persist. In just the first four sessions of July, the indices have gained nearly 1.5%, following a 6.5% rise in June.

Sumit Jain, Deputy CIO of ASK Investment Managers, remains optimistic about the Indian market’s long-term prospects. “We remain positive given the strength in earnings growth and its longevity, along with continued improvements in capital efficiency. While the market may not seem attractive at an aggregate level, businesses that deliver strong growth are expected to continue creating value.”

As the market ascends, investors are advised to approach with informed caution. Diversifying portfolios, focusing on robust fundamentals, and staying attuned to macroeconomic trends are key strategies recommended by experts to harness opportunities and navigate potential volatility in the coming months.

Ravi Singh, SVP of Retail Research at Religare Broking Ltd., emphasized the importance of sticking to fundamentally strong stocks and exiting weaker ones at current market levels. “We believe Nifty can touch the 24,900 mark by year-end. Investors should accumulate quality names during dips as we are in a bull run.”

In other news, the National Stock Exchange (NSE) announced a capping of 90% over the issue price for small and medium enterprises (SME) IPOs during the special pre-open session, effective immediately. This move aims to standardize the opening price discovery across exchanges and curb manipulation in the SME segment.

SEBI Chairperson Madhabi Puri Buch highlighted concerns over manipulation in the SME segment and the regulator’s efforts to provide a more facilitative listing environment for SMEs. This new cap aims to prevent misuse of the framework and ensure fairer market practices.

As Indian markets continue their upward trajectory, the focus remains on prudent investment strategies and vigilant market practices to sustain this growth and ensure long-term stability.