July 4, 2024
New Delhi, India
The Sensex opened above the 80,000 mark on Thursday, marking a significant milestone in its history. The 30-share benchmark index had briefly crossed this threshold on Wednesday, making it the fastest 10,000-point journey in its history, taking only 138 sessions to move from 70,000 to 80,000.
Market Highlights
Record Highs:
- On Thursday, the Sensex opened above 80,300, after briefly crossing the 80,000 mark on Wednesday.
- The Sensex had reached the 70,000 mark on December 11, 2023, and has now swiftly moved to surpass 80,000 within 138 sessions.
Fastest Milestone:
- The Sensex touched 70,057.83 on December 11, 2023, and hit 80,074.30 on July 3, 2024, showcasing the fastest 10,000-point rally in its history.
- Previously, the Sensex crossed the 60,000 mark in September 2021, the 50,000 mark in January 2021, the 40,000 mark in May 2019, and the 30,000 mark in March 2015.
Key Drivers and Insights
US Market Influence:
- In the US, bond yields have softened as weaker economic data reinforces the Federal Reserve’s case for starting rate cuts this year.
- The U.S. ISM measure of services activity dropped to its lowest point since mid-2020, and employment data came in weaker than expected.
- The upcoming June payrolls report on Friday will be closely watched.
Foreign Portfolio Investor (FPI) Flows:
- Lower bond yields and rate cut expectations in the US are likely to support continued FPI buying in Indian markets.
- FPI flows turned positive in June, with lower interest rates, weaker US bond yields, and a softer dollar making investments in emerging markets like India more attractive.
Banking Sector Gains:
- HDFC Bank, anticipated to receive $3 billion in passive fund inflows, has been a key driver of recent gains.
- Significant gains were seen in the banking and private banking sectors, supported by fair valuations and sustainable returns.
Major Gainers:
- Key drivers of the 10,000-point rally include Mahindra & Mahindra, Adani Ports and Special Economic Zone, Power Grid Corporation of India, Bharti Airtel, and State Bank of India, which have risen between 36% and 74%.
Conclusion
The Sensex’s rapid ascent to 80,000 marks a historic milestone, driven by strong performance in the banking sector and favorable foreign investment conditions. As the market continues to break new ground, investors remain optimistic about sustained growth and future gains.
Disclaimer:
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