Finance

Sensex hits all-time high: What is powering the bulls?

Sensex hits an all-time high because of multiple reasons. But, will this bull run continue and for how long? 

Sensex hits all-time high: The Boom in the Stock Market is because of these reasons


As Sensex hits an all-time high of 63,588.31, investors are running around with excitement because of the crazy bull run that has helped Sensex and Nifty reach such numbers. On Wednesday, the market surpassed December 1, 2022 levels to reach a new high. This upward trend in the Indian stock market follows the global rally where United States, Japan, South Korea, and Taiwan are also reaching their yearly highs. 

What is powering the Bulls?

Retail inflation has seen a decrease over the past few weeks. It eased to 4.25% in May, which was a good sign for the overall economy. 

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RBI has also not made any rate hikes in the last two monetary policies, indicating that the rate hike cycle is on pause for now. 

Last year and at the start of 2023 there was a huge fear that the US markets will go into recession, however, the markets have remained relatively positive, and no immediate sign of a recession can be seen. This is another reason why the global markets are seeing a correction and moving towards the green. 

The government has also increased its capital expenditure and this has been in manufacturing. 

Foreign portfolio investors (FPIs) have again shown an interest in the Indian markets and have increased their investments. This has given a huge upward push to many stocks. 

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Mid-caps and small-caps have also shown great performance and this is likely to continue. Small-cap banks have especially shown a good upward trend. 

Banks are seeing a good balance sheet and sustained credit growth. 

Though these positive signs are a good indication for the market, analysts are worried about global uncertainty, economic slowdown, and interest rate hikes. Monsoon has also been poor this time around and this does impact the economy in multiple ways and can show up with a downward trend in the market. 

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Harshita Bajaj

Harshita has a background in Psychology and Criminology and is currently pursuing her PhD in Criminology. She can be found reading crime thrillers (or any other book for that matter) or binge-watching shows on Netflix when she is not in hibernation.
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