Sensex hits 72,000 level for 1st time on global cues

NEW DELHI: Domestic equity market registered a gain for the fourth successive session on Wednesday, with two benchmark indices NSE Nifty50 and BSE Sensex clocking all-time highs. The NSE index hit a fresh lifetime high of 21,673, while the BSE index crossed the 72,000 level for the first time. The 30-share index had scaled the 70,000 mark for the first time on December 11 and the 71,000 mark on December 15.

At Wednesday’s close, Sensex was up 701.63 points or 0.98% at 72,038.43, and the Nifty was up 213.50 points or 1% at 21,654.80. Vinod Nair, head of research at Geojit Financial Services, said this upward trend was mainly supported by the Santa Claus rally in anticipation of early rate cuts by the US Fed and cooling global inflation. Additionally, the news of major shipping companies resuming operations through the Red Sea despite ongoing tensions further bolstered domestic sentiment.

The bullish momentum in domestic market is so strong that Sensex and Nifty50 have surged about 13-14% each since the beginning of November 2023. The ongoing rally picked up a pack after the victory of PM Narendra Modi-led Bharatiya Janata Party in three state elections. The market received another booster after the US Federal Reserve signalled three rate cuts in 2024. The developments coupled with favourable factors such as sharp growth in September quarter GDP numbers, robust GST revenue, a fall in retail inflation, and easing of bond yields have made India an attractive market, mainly for foreign institutional investors (FIIs).