Continuing its winning streak for the eighth day, the Sensex rose about 468.6 points on Thursday to surpass the 63,500 level at its new all-time high of 63,563.18 in early morning opening trading. The Nifty also posted a jump from 103.20 points to 18,861.55, his lifetime high. The rupee on Thursday also rose 28 paise to 81.02 per dollar in early morning trading from its previous close of 81.30.
Domestic stock markets closed in positive territory for the past seven days, with Thursday marking the eighth day.
Of the Sensex voters, 25 of the 30 companies were in the green. Tech Mahindra, Wipro, Infosys, TCS and HCL Tech were the top winners at the BSE Sensex. On the other hand, PowerGrid, Hindustan Unilever, Asian Paint, M&M and Maruti were the weak losers.
UK Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The remark by US Fed chief Powell that ‘moderate the pace of interest rate hikes makes sense’ came as a bulls eye to the ongoing rally forward. The drop in the dollar index to 105.5 and the sharp drop in US 10-year bond yields to 3.63 percent are hugely supportive of the continued inflow of FIIs. In short, the market construction is favorable for the rally to continue.”
He added that concerns about high valuations are likely to be ignored by the market in the near term. However, investors should be careful chasing this rally. While Sensex and Nifty are at record highs, the MidCap and SmallCap indices are 2 percent and 17 percent respectively from their peaks.
“That’s why private investors can chase this FOMO-driven rally. That would be risky, as mid and small caps will correct sharply during a market pullback, which can happen because valuations are high. Security is in high quality big capital,” he said.
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