Sensex hits 63,000 for first time

NEW DELHI:  India’s equity market continues its dream run with the two benchmarks- BSE Sensex and NSE Nifty-gaining for the seventh straight session and hitting new all-time highs. The Sensex closed above the 63,000 level for the first time ever while the broader Nifty settled above the 18,750 mark. 
The 30-share index hit an intraday high of 63,303 and the 50-share Nifty touched a high of 18,816 on Wednesday. 

The Sensex closed the day at 63,099, up 0.67%, and the Nifty shut shop at 18,758, up 0.75%. 
While the current rally, which picked up during early October, is being aided by expectations of reduction in future rate hike by central banks, easing of crude price and sustained investment by foreign investors, some analysts are not ruling out a short-term correction, citing the expensive valuation.  

Vinod Nair, Head of Research at Geojit Financial Services, said, “Shortly, markets will have to digest the Fed & RBI policy meetings in December, which will determine the future trend of interest rates & economic growth. Inflation & interest rates are forecasted to be upbeat in 2023, which will weigh on central bank’s monetary policy and affect the performance of equities.” He added,

“It is highly possible that India’s future performance will be a challenge, being the most expensive market compared to other emerging markets, which are trading very cheaply today. Hence, there is a risk that India will underperform, while the total performance will depend on the overall performance of the global market, which has to overcome the risk of recession.”

India’s market on Thursday will react to the domestic GDP growth data which slowed down to 6.3% during the second quarter of FY23. The market will also react to US Federal Reserve chief Jerome Powell’s speech and auto sales figures that they cause stock-specific movements. Santosh Meena, Head of Research, Swastika Investmart, expects the bullish trend to continue.