Indian equity benchmarks continued their record-setting spree in early deals on Thursday, with Nifty reclaiming 21,700 and Sensex crossing 72,300 levels.
The 30-share BSE benchmark Sensex rallied over 270 points to hit a new all-time high of 72,360 in initial trades. The broader NSE Nifty 50 index also climbed over 70 points, reaching a fresh peak at 21,745.
Strong gains led the rally in PSU banks, and auto and metal stocks, offsetting losses in IT and cement shares. Bajaj Finserv, M&M, NTPC, Nestle, and JSW Steel emerged as top Sensex gainers.
In the broader market, midcap and smallcap indices rose over 0.3% each, trading in tandem with benchmarks. Among sectors, the Nifty PSU Bank index surged over 1%.
The domestic currency rupee also appreciated, opening at 83.33 against the US dollar, tracking an upbeat investor sentiment.
Analysts attributed the ongoing rally to positive cues from global markets as lower bond yields boosted appetites for riskier assets globally. Buying by foreign investors has also bolstered domestic equities.
However, market experts warned that global recessionary fears persist, which could spark bouts of volatility going ahead. Though valuations remain expensive, quality stocks across sectors continue to be lapped up.
Technically, the Nifty can test 21,800 if the 21,700 level holds. But the upside may remain capped ahead of the monthly derivatives expiry, with 22,000 remaining a key hurdle.
Sustained FII inflows coupled with supportive global trends point to the bullish momentum continuing in the near term. However, investors have been advised to keep close tabs on global developments.
