Indian Stock Market Hits New Highs: Sensex Crosses 81,000 Mark
Indian stock indices reached new heights on Thursday, with the Sensex surpassing the 81,000 mark for the first time. The indices opened steady but gained momentum as the day progressed, showing a 0.7-0.8% rise.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The positive from the Indian stock market perspective is that expectations of a weakening dollar will increase foreign portfolio inflows, imparting resilience to the market.” He also mentioned that the market would be influenced by Budget expectations and Infosys’ financial results, which are due later today.
The International Monetary Fund (IMF) recently raised India’s growth projections for 2024 from 6.8% to 7%, maintaining its status as the fastest-growing economy among emerging markets and developing economies. This upward revision has also buoyed the markets.
Indian stock markets were closed on Wednesday due to Muharram but had already been touching fresh all-time highs in the preceding weeks. The market’s upward trend was driven by a moderation in US inflation, better-than-expected IT sector results, and a lack of negative market fundamentals.
Looking ahead, market participants will closely monitor the Budget presentation on July 23. Infosys’ financial results, to be released later today, will also be widely tracked. So far in the 2024-25 fiscal year, Sensex and Nifty have accumulated 11-13% returns, supported by strong buys from both foreign and domestic institutional investors.
Doubts Revealed
Sensex -: Sensex is a short form for the Bombay Stock Exchange Sensitive Index. It is a measure of the 30 largest and most actively traded stocks on the Bombay Stock Exchange in India.
Stock indices -: Stock indices are like a scorecard for the stock market. They show how well a group of stocks is doing. In India, the Sensex and Nifty are popular stock indices.
Dollar -: The dollar here refers to the US dollar, which is the currency of the United States. Its value can affect other currencies and economies, including India’s.
Foreign portfolio inflows -: Foreign portfolio inflows are when people or companies from other countries invest money in India’s stock market. This can help the market grow.
IMF -: IMF stands for International Monetary Fund. It is an organization that helps countries with their economies by giving advice and loans.
Infosys -: Infosys is a big Indian company that provides technology and consulting services. Its financial results can impact the stock market.
Budget -: The Budget is a plan by the government on how it will spend money and collect taxes. It is important for the economy and can affect the stock market.
Institutional investors -: Institutional investors are big organizations like banks or pension funds that invest large amounts of money in the stock market. Their actions can influence market trends.