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  5. Sensex touches record high of 76,787, days after massive bloodbath on Lok Sabha election counting day

Sensex touches record high of 76,787, days after massive bloodbath on Lok Sabha election counting day

The Sensex has reached an all-time high just days after experiencing a significant downturn on election counting day on June 4. The surge follows a period of uncertainty and fluctuation, demonstrating the dynamic nature of the stock market in response to political events.

Edited By: Anurag Roushan @Candid_Tilaiyan Mumbai Updated on: June 07, 2024 15:37 IST
Stock markets update
Image Source : INDIA TV Stock markets update for June 7

Stock markets: The Indian stock markets experienced a significant surge, with both the Sensex and Nifty indices climbing over 2 per cent, driven by optimism as the formation of a new government approached, according to market experts. The Sensex reached a historic peak, hitting an all-time high of 76,787 points. Meanwhile, the Nifty 50 came tantalizingly close to its record high, missing it by just 25 points as it traded at 23,338 points in the afternoon session.

This notable upswing coincided with a key decision from the Reserve Bank of India's Monetary Policy Committee (MPC). For the eighth consecutive time, the MPC opted to keep the policy rates steady at 6.5 percent, maintaining a consistent stance on interest rates. Additionally, the central bank revised its real GDP growth forecast for the fiscal year 2025, raising it to 7.2 percent from the previous estimate of 7 percent. This upward revision reflects the RBI's increased confidence in the country's economic prospects.

Sensex, Nifty record upswing 

By 2:42 PM, the Sensex had climbed 1,415 points, or 1.9 percent, reaching 76,489 points. Similarly, the Nifty 50 rose by 413 points, or 1.8 percent, standing at 23,234 points. Market breadth was positive, with 2,584 shares advancing, 783 shares declining, and 91 shares remaining unchanged.

What did Market analysts say? 

Market analysts attributed this remarkable rise in the benchmarks to an unexpected rally in IT stocks. They noted that favorable valuations were the main factor driving renewed investor interest in the IT sector, which had experienced limited gains over the past 1.5 to 2 years. On this day, the Nifty IT index surged by 3.5 percent, with leading IT companies such as Infosys, Tech Mahindra, and TCS posting significant gains. This resurgence in the IT sector played a crucial role in propelling the overall market upwards.

Markets recover after June 4 bloodbath 

Among the 30 Sensex companies, Wipro, Tech Mahindra, Infosys, Tata Consultancy Services, Bajaj Finserv and Tata Steel were among the biggest gainers. IndusInd Bank, Larsen & Toubro, Kotak Mahindra Bank and ITC were among the laggards. In Asian markets, Seoul quoted with gains while Tokyo, Shanghai and Hong Kong traded lower. It should be noted here that markets had the worst trading day in four years on June 4 as the BJP fell short of the magic number for the first time since 2014.

(With inputs from agencies)

ALSO READ: RBI keeps repo rate unchanged at 6.5% for eight consecutive time | Key highlights

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