Indian stocks extended their record-breaking rally for a fifth straight session on Thursday, with investor sentiment remaining upbeat despite global uncertainty.
The benchmark S&P BSE Sensex closed 371 points higher at an all-time peak of 72,410. The NSE Nifty 50 Index also settled at a new high of 21,778, up 124 points driven by broad-based buying.
All sectoral indices ended higher except IT and consumer durables. Auto, metal, realty, and FMCG stocks saw robust gains.
Mahindra & Mahindra was the lead gainer on the Sensex, climbing 4.5 percent. Tata Motors, NTPC, Nestle India, and PowerGrid also saw strong interest. Larsen & Toubro, Wipro, Asian Paints, and TCSClosed lower.
The broader midcap and smallcap indices outperformed the benchmarks, indicating bullish overall sentiment.
Experts say the ongoing rally has been powered by unabated foreign fund inflows, improving domestic indicators, and optimism over corporate earnings growth. Foreign investors purchased equities worth Rs 2,926 crore on Wednesday.
The Indian rupee also appreciated 17 paise against the U.S. dollar during the session aided by a retreat in crude oil prices.
Market observers, however, warn that valuations remain steep after the recent run-up. However abundant liquidity and a largely stable global environment continue to drive domestic stocks to record peaks.
The Sensex has zoomed nearly 5,000 points in 2022 on the back of undeterred domestic flows combined with some reallocation of foreign funds towards emerging markets like India. Analysts believe the upmove still has legs though some consolidation cannot be ruled out.
For Indian equities, global cues, foreign inflows, and corporate earnings will remain key sentiment drivers as we step into 2023. Market experts advise long-term investors to utilize any dip to buy quality names.
