Indian Stock Market Hits All-Time High: Factors Driving the Gains

Nifty 50, Sensex Hit All Time High:

Indian stock market benchmarks, the Sensex and the Nifty 50, reached new all-time highs in intraday trade on Tuesday. This comes after the markets also hit fresh all-time highs on Monday, April 1, despite mixed global cues. The Sensex opened at 73,968.62 and rose approximately 0.82% to reach a new all-time high of 74,254.62 within the first two hours of trading.

So, why is the Indian stock market gaining today? Experts attribute this positive momentum to several factors. Firstly, the strong prospects of the Indian economy contribute to the undercurrent of the market. Additionally, expectations of rate cuts in the coming months are boosting market sentiment. Investors are taking advantage of the recent correction and remain positive about the medium to long-term prospects of the Indian stock market.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasizes the bullish undertone and momentum in the market. He believes that the recent surge in the Nifty by 322 points over the last two trading days indicates that the upward momentum can be sustained. Vijayakumar also highlights that some mutual funds have started restricting redemptions from small-cap schemes due to concerns over frothy valuations in this segment. This could result in higher flows of funds into large-cap stocks, further boosting the market.

According to brokerage firm ICICI Direct, the Nifty 50 is expected to continue trading with a positive bias. The immediate support for the index is projected to be near 22,000, with expectations of gradually heading towards 22,700 in the coming weeks. The firm believes that the index has already undergone a corrective phase in the first quarter and has formed a higher base, setting the stage for the next leg of a bull rally towards 23,400 following the election outcome. The firm also expects 21,900 to act as immediate support.

Despite ongoing challenges, the Sensex and the Nifty 50 witnessed impressive gains of 29% and 25%, respectively, in the last financial year. Experts remain optimistic that these indices will continue to record robust growth in the new financial year.