NEW DELHI: With bulls showing zero signs of taking a step back, the BSE barometer Sensex is expected to hit the 70,000 milestone and the NSE benchmark Nifty50 is likely to clinch the 21,000 mark for the first time ever in India’s capital market history in the next few sessions.
Gaining for the seventh straight session, the 30-share BSE Sensex surged 357.59 points, or 0.52%, to settle at a new record of 69,653.73 on Wednesday while the broader Nifty50 climbed 82.60 points, or 0.40%, to hit its fresh peak of 20,937.70. “70000 Sensex and 21000 Nifty are only a question of when. The undercurrent of the market is bullish and all factors are favourable, except, perhaps, valuation,” V K Vijayakumar, chief investment strategiest at Geojit Financial Services, told this newspaper.
He added that foreign institutional investors turning buyers and huge delivery volumes in largecaps, particularly in leading banking names, can easily take Sensex beyond 70000 and Nifty beyond 21000 in the near-term. The ongoing rally has picked up a pack after the victory of PM Narendra Modi-led Bharatiya Janata Party (BJP) in Madhya Pradesh, Rajasthan and Chhattisgarh state elections. The election results have reinforced the belief that the ruling party will come back to power in the 2024 general elections. This, according to market experts, will provide stability and business-friendly policies.
The election results coupled with favourable factors such as sharp growth in September quarter GDP numbers, robust GST collections and a fall in consumer inflation have made India a very attractive market despite being more expensive than other emerging economies.
In the past seven sessions, Sensex and Nifty50 have added about 5-5.50 percentage points each. In the calendar year 2023 so far, Sensex has gained about 14% while Nifty has surged over 15%. The gains have pushed India’s market capitalisation to an all-time high of Rs 349 lakh crore, or about $4.20 trillion.