Sensex @ 75,000: Robust economy fires up Indian equities; latest run up includes most sectors

Just a day after India’s stock market reached Rs 400 trillion in combined market capitalisation of all BSE-listed firms, the Sensex hit the 75,000-mark for the first time on April 9. NSE Nifty 50 also rose above 22,750 to hit a new high.

Also read: Only four stocks contribute 60% to the 5,000-point rally in Sensex to Summit 75K

The Sensex was up 382 points at 75,124.28 at open. The latest 5,000-point run in the index came in just 82 days. Earlier, Sensex had crossed the 70,000 mark in December 2023. It has gained over 25 percent in the last one year, and over 14 percent in the last six months.

There are numerous factors driving this growth in the markets. A robust domestic economy, GDP growth, and also the factors led by credit growth and policy continuity are some of the key reasons, according to Kranthi Bathini, Director, Equity Strategy, WealthMills Securities.

What has been driving the growth in India’s equity markets

“Around the globe, there are 64 countries going for election this year. India is the clear-cut winner, as there is greater clarity on policy continuity among the investors,” he said.

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The Sensex hit the 5,000 mark for the first time in the year 1999, after which it took almost 1,588 days (more than 4 years) to double to the 10,000 mark.

This latest milestone is the fourth quickest gain that the index has seen. In September 2021, the Sensex hit 60,000, rising 5,000 points in just 28 days. Previously, in January 2021, the Sensex hit the 50,000 mark in 33 days.

In the last 82 days, most sectors have seen gains. The biggest contributors to this rally have been realty, telecommunications, energy, auto and capital goods stocks. BSE Realty Index has gained around 26.66 percent, BSE Telecommunications Index has gained 21.43, BSE Energy Index has gained 27.25 percent and BSE Auto has gained around 23.4 percent.

On April 8, the biggest Sensex gainers were Maruti Suzuki, Reliance Industries and Mahindra and Mahindra amongst others. Some of the biggest gainers during morning trades on April 9 have been Tata Steel, Infosys and JSW Steel.

Where is Sensex headed now? Will growth continue?

Analysts continue to remain bullish on the Indian economy. According to Bathini, there is a consensus on the Indian economy across the globe — from domestic institutional investors to retail investors as well as foreign portfolio investors. This has been driving the exuberance. “We are entering into the earning season. So the earning season and the companies’ outlook is going to determine whether we are going to sustain at this level or not,” he added.

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