Equity market indices struck record high on Tuesday afternoon, with the 30-share BSE benchmark Sensex surge to an all-time peak of 78,016.04 and the Nifty soaring to a lifetime high of 23,710.45. This is the first time that Sensex has crossed the 78,000 milestone.
Led by Large Cap banking stocks, Nifty Bank index also touched the all-time high of 52,600.75. The biggest gainers in the Sensex basket were Axis Bank, HDFC Bank, ICICI Bank, UltraTech Cement, State Bank of India and Kotak Mahindra Bank.
The major laggards in the Sensex list included Adani Ports, Power Grid, Tata Steel and Asian Paints.
What led to the bull run today?
One of the main reasons for the record rally is attributed to firm cues in Asian markets, including Seoul, Tokyo and Hong Kong.
Another reason could be RBI's Monday announcement that India reported a current account surplus of $5.7 billion or 0.6 per cent of GDP in the quarter ending March 2024. The previous time the crucial metric of the country's external strength turned into surplus mode was ten quarters ago.
V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, told news agency PTI, "A positive news from the market perspective is the current account turning surplus in Q4 FY24. This will take away the pressure on the rupee and pave the way for FII inflows when clarity emerges on the Fed rate cuts.”
