Sensex Hits New Record High: HDFC Group Stocks and Reliance Drive Surge

Rajesh
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The Sensex reached a historic milestone, soaring to a new record high of 63,558 points, fueled by strong demand for HDFC group stocks and Reliance. Discover the key factors behind this remarkable surge and gain insights from market experts on the future outlook.

The Sensex, India's benchmark index, achieved a significant milestone by surging to a new record high of 63,558 points. This impressive rally was primarily driven by the soaring demand for HDFC group stocks and Reliance. In this article, we delve into the reasons behind this surge and provide expert viewpoints on the future prospects of the market.

Sensex Hits New Record High

Sensex's Remarkable Journey:

From its humble beginnings at 1000 points on 25 July 1990, the Sensex has witnessed a phenomenal rise. Today, it stands at an all-time high, taking just five years to double from 31,000 points (recorded on 26 May 2017) to the current level of 63,558 points. This extraordinary growth exemplifies the market's resilience and its potential for investors.

Top Gainers and Losers:

Within the bluechip index, Power Grid, HDFC Bank, HDFC, Bharti Airtel, and Wipro emerged as the top five gainers during afternoon trading. Conversely, Axis Bank, M&M, Maruti Suzuki, ITC, and Bajaj Finance experienced declines and were the top five losers. These fluctuations highlight the dynamic nature of the market and the need for careful analysis when making investment decisions.

Expert Insights:

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observed that the Sensex's rise to an all-time high aligns with the global stock market rally. He notes that most markets are currently at their 52-week highs, compensating for last year's overreaction. While sustaining a rally beyond record highs may be challenging for India due to rich valuations, Vijayakumar believes that a fundamental support limit will eventually be reached.

Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd, expressed optimism about the market's potential for further upward movement. He highlighted the positive sentiment among market participants and emphasized the importance of monitoring trading volumes and anticipating profit booking activities near record-high levels.

A R Ramachandran, Co-founder & Trainer of Tips2trades, cautioned that despite the Sensex reaching an all-time high, the overall market appears overbought. He noted that apart from private sector banks and IT stocks, the remaining sectors could experience a correction.

Sectoral Performance:

In the sectoral landscape, several sectors exhibited positive performance. NIFTY Bank, Auto, Nifty Financial Services, Nifty IT, Pharma, and PSU Bank all demonstrated gains. Additionally, in the broader market, Nifty Mid Cap 50 surged by 0.95%, Nifty Midcap 100 soared by 0.92%, and Nifty Smallcap 100 registered a gain of 0.41% during afternoon trading.

Conclusion:

The Sensex's surge to a new record high showcases the strength of the Indian stock market. Driven by the demand for HDFC group stocks and Reliance, this remarkable milestone signifies positive market sentiment. While experts provide varying opinions on the future trajectory, closely monitoring trading volumes and sectoral trends will be crucial for understanding the market's behavior.

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