Indian Stock Market Hits New Highs: Sensex Nears 86,000 Points
Indian stock indices continued to rise, reaching new highs for the fifth straight session on Thursday. The Sensex almost touched 86,000 points, closing at 85,836.12 points, up 666.25 points or 0.78%. The Nifty closed at 26,186.00 points, up 181.85 points or 0.70%.
Top Performers
Among the sectoral indices, Nifty auto and Nifty metal were the top movers, rising by 2.26% and 2.13%, respectively.
Factors Behind the Rise
The US Federal Reserve’s decision to cut interest rates by 50 basis points has been a significant factor in supporting Indian stocks. Lower interest rates in the US often lead to increased investments in markets with higher rates, like India.
Foreign portfolio investors (FPIs) have also been buying more Indian stocks, hoping for better returns. In September alone, FPIs invested Rs 49,459 crore in Indian stocks, marking the fourth consecutive month of net buying.
Expert Opinion
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that there are no immediate triggers that could cause a sharp market movement. He suggested that investors focus on large-cap stocks due to overvaluation in mid and small-cap segments. He also mentioned that Bank Nifty has more potential for growth.
Doubts Revealed
Sensex -: Sensex is a short form for the Bombay Stock Exchange Sensitive Index. It is a number that shows how the stock market is doing in India.
Nifty -: Nifty is a short form for the National Stock Exchange Fifty. It is another number that shows how the stock market is doing in India.
US Federal Reserve -: The US Federal Reserve is like the big bank of the United States. It helps control the money and interest rates in the country.
interest rate cut -: An interest rate cut means that the cost of borrowing money is reduced. This can make it cheaper for people and businesses to take loans.
foreign portfolio investors -: Foreign portfolio investors are people or companies from other countries who invest money in India’s stock market.
Nifty auto -: Nifty auto is a group of companies in the Nifty index that make cars and other vehicles.
Nifty metal -: Nifty metal is a group of companies in the Nifty index that work with metals like steel and aluminum.
VK Vijayakumar -: VK Vijayakumar is a person who works at Geojit Financial Services and gives advice about the stock market.
Geojit Financial Services -: Geojit Financial Services is a company that helps people invest their money in the stock market.
large-cap stocks -: Large-cap stocks are shares of big, well-known companies that are usually safer to invest in.
mid and small-cap segments -: Mid and small-cap segments are shares of medium and small-sized companies that can be riskier to invest in.
overvaluation -: Overvaluation means that the price of a stock is higher than what it is really worth.