The BSE Sensex soared to an all‑time high of 76,890.32 in early trade today, driven by sustained foreign portfolio inflows, robust macroeconomic data, and renewed investor confidence ahead of the earnings season. The benchmark index has rallied nearly 12% so far this calendar year, outperforming most emerging markets.
Bull run continues
Foreign institutional investors (FIIs) have pumped in over ₹1.2 lakh crore into Indian equities in 2024 so far, with March alone witnessing inflows of ₹35,000 crore. "India's growth story remains intact despite global headwinds," said Dr. A. Seshan, chief economist at Kotak Mahindra Bank. "Stable government, strong corporate earnings, and moderating inflation are attracting global capital."
“India's growth story remains intact despite global headwinds. Stable government and strong earnings attract global capital.”
All sectoral indices traded in the green, with banking, IT, and auto stocks leading the rally. Nifty also crossed the 23,200 mark for the first time. HDFC Bank, Reliance Industries, and ICICI Bank contributed the most to the index gains.
What's driving the surge?
- FII inflows: Continuous buying by foreign funds, reversing the selling trend of 2022–23.
- Domestic liquidity: SIP contributions hit a record ₹19,000 crore in February.
- Global cues: US Fed rate cut expectations and stable crude prices boosted sentiment.
- Earnings growth: Nifty companies reported 18% YoY profit growth in Q3 FY24.
Nifty 50 performance snapshot
| Index | Value | Change | % |
|---|---|---|---|
| Sensex | 76,890.32 | +1,245 pts | +1.65% |
| Nifty 50 | 23,245.80 | +378 pts | +1.65% |
| Bank Nifty | 52,346.70 | +1,102 pts | +2.15% |
Sectoral stars
Banking & financial services led the rally, with the Nifty Bank index climbing 2.1%. IT stocks also saw renewed buying on expectations of a revival in US tech spending. Auto stocks gained on strong February sales numbers. "The rally is broad‑based, which signals underlying strength," said Vikram Mehta, fund manager at SBI Mutual Fund.
What experts say
While optimism is high, some analysts advise caution. "Valuations are no longer cheap; the Nifty trades at 22 times one‑year forward earnings," pointed out Priyanka Sharma, independent market strategist. "Investors should moderate return expectations and watch for global volatility."
However, long‑term structural drivers remain intact: formalisation of the economy, strong corporate balance sheets, and digital public infrastructure. "Every dip is being bought into," added Sharma.
Outlook
With elections behind and policy continuity expected, foreign investors are likely to maintain their positive stance. Additionally, inclusion of Indian bonds in global indices (JPMorgan, Bloomberg) could bring another $25‑30 billion over the next 12 months.
The Sensex record is not just a number — it reflects the growing weight of India in the global investment landscape. For retail investors, the message is to stay disciplined and avoid chasing momentum blindly.