NEW DELHI: In another milestone for India’s equity market, the BSE benchmark Sensex closed above the 73,000 level for the first time on Monday and the NSE benchmark Nifty50 surpassed the 22,000 level.
The two benchmarks hitting fresh highs come as investors have turned their attention towards IT shares and two heavyweights- Reliance Industries Ltd and HDFC Bank.
The 30-share pack Sensex close the Monday session 759.49 points or 1.05% higher to a lifetime closing peak of 73,327.94. During the day, it hit an all-time high of 73,402.16. The Nifty50 notched a new peak of 22,116 and ended the day at 22,097, up 203 points or 0.93%. Investors, meanwhile, got wealthier Rs 3 lakh crore as the total market capitalisation of all BSE listed companies hit a record high of Rs 376 lakh crore on Monday, up Rs 3 lakh crore from the previous closing.
In the ongoing bull run observed since late October, the Sensex has added over 10,000 points while the Nifty50 added more than 3,200 points. The BSE Sensex crossed the mark of 72,000 in late December while the Nifty50 crossed the 21,000 level in early December.
The key driver behind Friday’s and Monday’s rally was a better than expected third-quarter earnings reported by the IT companies. Investors are hopeful that other heavyweights such as HDFC Bank and RIL will also announce a strong set of Q3FY24 numbers.
“The market gained momentum, led by the uptick in the IT index with the growing optimism about increased discretionary spending and strong deal wins,” said Vinod Nair, Head of Research, Geojit Financial Services.
In the Nifty50 pack, shares of IT firm Wipro surged 14% intraday, before closing 6% higher. Pranav Haridasan, MD and CEO at Axis Securities said that the IT sector is leading the Nifty rally this month and has spiked significantly in the last two trading sessions because of decent results backed by cheaper valuations.