Indian equity benchmarks staged a sharp rally on Wednesday, with the Sensex surging over 350 points to touch record highs and the Nifty reclaiming the psychologically key 20,000 level.
The BSE Sensex jumped nearly 550 points from the day’s low to hit an all-time peak of 66,612 in early trade. The NSE Nifty followed suit by crossing the historic 20,000 mark for the first time ever, powered by broad-based buying.
All sectoral indices traded firmly in the green, with IT, media, and PSU bank stocks seeing strong momentum. Midcap and smallcap shares also saw keen investor interest after recent underperformance.
TCS, Tech Mahindra, Wipro, HCL Tech, SBI, and JSW Steel were among the top contributors to the benchmark indices. Only PowerGrid faced minor losses on the Sensex pack.
Analysts pointed to sliding crude oil prices, a recovering rupee, and sustained foreign fund inflows as the driving forces behind the ongoing rally. Upbeat Q2 earnings so far have also bolstered sentiment.
The Indian markets had managed to close higher on Tuesday as well, extending gains for the fourth straight session amid an overall positive trend in global equities.
Experts, however, cautioned investors to not get carried away by the momentum. Though domestic fundamentals remain strong, raging inflation worldwide and recession fears persist.
Nonetheless, the landmark 20,000 achievement for the Nifty marks a major psychological victory for the Bulls after years of consolidation. With FIIs turning buyers, the Santa Claus rally may have kicked off early this year.
