Reasons Behind Sensex’s Record Rise
The BSE Sensex achieved a new milestone by reaching 80,375, driven by optimistic global market sentiments amid speculation about a potential interest rate cut by the US Federal Reserve. This marks a significant surge from the 70,000 level touched in December 2023. Today’s rally saw robust buying across various sectors, with notable gains in stocks like ICICI Bank, Infosys, TCS, HCL Technologies, Tata Motors, and NTPC.
Expert Insights and Market Outlook
Siddhartha Khemka, Head of Retail Research at Motilal Oswal, attributed the continued market highs to favorable global trends and supportive comments from US Fed Chair Powell. Sandeep Pandey, Founder of Basav Capital, emphasized the importance of sectors like banking, auto, IT, power, and manufacturing in sustaining this momentum, particularly those focusing on capital expenditure expansion.
Technical Analysis and Future Projections
According to Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, the Sensex faces resistance at 80,700, with crucial support levels around 78,500 to 79,000. He suggested that breaching 80,700 could pave the way for the index to reach 83,000, but cautioned about potential corrections if this level isn’t sustained, especially ahead of the Union Budget 2024.
Market Expectations and Budget Impact
Investors are keenly awaiting the Union Budget 2024, anticipated to be growth-oriented. Prime Minister Narendra Modi’s indications of forthcoming economic reforms have bolstered market confidence, with a focus on sectors expected to benefit from budgetary measures.
Disclaimer: The views expressed are based on analysis from individual analysts and experts, and investors are advised to consult certified experts before making investment decisions.
