Sensex Touches 65,000 Mark For The First Time Ever
- Posted on July 3, 2023
- News
- By Ishna
- 321 Views
Indian stock markets are soaring to new heights as the Sensex index reached an impressive milestone of 65,000. Building on the previous week's significant gains, the Sensex and Nifty indices saw a 0.7 percent increase this morning. This upward trend marks the highest accumulation in months, with each index gaining around 3 percent last week.
The surge in the stock market can be attributed to various factors. Firstly, the merger of HDFC and HDFC Bank has contributed to positive performance, with both companies emerging as top gainers. Additionally, JSW Steel, Ultratech Cements, and Grasim Industries have also seen substantial gains among the Nifty 50.
Internationally, the rally in global stock markets is primarily driven by the unexpected strength of the U.S. economy. Despite the Federal Reserve's aggressive 500 basis points rate hike, the U.S. economy achieved a 2 percent GDP growth in Q1 2023. This surprising resilience has defied earlier predictions of a U.S. recession by mid-2023, leading to a correction in market expectations.
While the U.S. stock market rally is mainly fueled by the tech sector, India's upward trajectory is more diversified and broad-based. Foreign fund inflows have further bolstered the Indian stock market, contributing to its resilience and growth.
Although the market momentum remains strong, experts warn of stretched valuations. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggests that while the rally will continue, investors should be cautious of potential overvaluations. Ajit Mishra, SVP - Technical Research at Religare Broking Ltd, advises investors to adopt a "buy on dips" strategy, with the Nifty index showing a range of 19,350-19,500.
As Indian stock indices continue their upward trajectory, investors are eagerly watching for new developments and opportunities in this thriving market.
For more updates keep visiting our website www.topstoriesworld.com where we provide unbiased, true and top stories of the world.
