Sensex Surpasses Historic 80,000 Mark For The First Time
The benchmark Sensex index crossed the momentous 80,000 level for the very first time yesterday, registering strong gains and reaching new all-time highs. The index gained over half a percent during intraday trading to hit a record peak of 80,074 points. The broader Nifty 50 index also joined in on the rally, adding nearly one percent to close at an unprecedented 24,286 points.
Various sectors contributed to the record-breaking run, with financial stocks playing a leading role. One of the largest private banks saw its shares rise sharply following an increase in its weightage on a prominent global index. This significant rejig is expected to bring billions of dollars worth of foreign investments into the scrip over the coming week. Meanwhile, solid performances by other heavyweight counters such as the largest oil and gas major as well as other lenders also boosted market sentiment overall.
It is noteworthy that the Sensex has doubled in just five short years to attain this new milestone, having taken a much longer 12 years to scale up from 20,000 to 40,000 points previously. Various factors have combined to fuel the powerful bull run in domestic equities over recent times, including high retail participation, an impressive economic growth outlook, and attractive valuations. Massive inflows into equity mutual funds, witnessed yet another record high last month, highlight the exuberant risk appetite of domestic individual investors as well.
Going forward, while the index breaches are a positive indication, experts caution that market euphoria can fluctuate in the face of various headwinds. Long-term investors are thus advised to maintain prudent asset allocations and manage return expectations rationally rather than get carried away in the moment. As the journey on the bourses remains as dynamic as ever, both upsides and downsides are sure to co-exist for discerning participants alike.
