Sensex breaches 84000 mark for first time; up from 83K in just 8 days

New Delhi [India], September 20 (ANI): Domestic stock markets are witnessing a continuous surge with the upward momentum persisting in the Nifty and Sensex indices.

On Friday, the Sensex crossed the 84,000 mark, completing a 1,000-point rise in just eight days. Earlier, on September 12, the Sensex had crossed the 83,000 mark for the first time and the bull market is now eyeing the 85,000 level.

Experts attribute this strong rally in Indian markets to the anticipation of a potential rate cut by the Reserve Bank of India (RBI), following the US Federal Reserve’s decision to cut rates. They noted that such a move in the US has led to an increase in liquidity flowing into economies like India, where returns on investments are more attractive due to higher interest rates compared to the US.

Ajay Bagga, Banking and Market Expert told ANI that, “The Fed rate cut, especially a front loaded Jumbo rate cut signals a shift of equity flows into Emerging markets. India has not seen that strong a FII inflow on the back of “underweight” ratings by many foreign brokerages due to the high valuations of the MSCI India Index that stands at a 1 year forward PE of 24.7.”

“However, as more flows become available, this could change and we may see FII flows coming back strongly into the Indian markets. Any small correction of course makes the Indian market that much more attractive as India represents an attractive combination of strong macros, pro-growth policy regime, a big domestic consumption market along with well capitalised banks and strong corporate earnings visibility,” he further said.

This inflow of liquidity is driving Indian markets to new heights, with investor sentiment remaining bullish as the markets continue their upward trajectory.

As per the experts the expectation of an RBI rate cut has further fueled optimism, pushing the Indian stock indices to record levels, as investors anticipate improved economic conditions and stronger corporate earnings in the near future.

“Yesterday saw a corrective phase in the Indian stock markets, but today the momentum is building up as investors anticipate a rate cut from the Reserve Bank of India (RBI), following the US Federal Reserve’s recent rate cuts. Markets often tend to move ahead of actual announcements, reflecting expectations before any formal decision is made. Investors are riding this rally, driven by the possibility of lower interest rates, which would boost economic activity and corporate earnings” said Vijay Chopra Market Expert.

Nifty index also touched a new high on Friday at 25,725.60 and Sensex claimed a new high of 84,240.50 points at the time of filing this report.