Where global cues are facing mixed sentiments due to Covid-19 constraints and fear over financial stress due to China's Evergrande, Indian benchmarks Sensex and Nifty 50 raced for new historic highs.
Since the start of this week, Sensex and Nifty 50 have clocked new record levels on numerous occasions and Friday they bloomed to further new heights.
Sensex earmarked a new 52-week high of 60,333. While Nifty 50 neared a fresh record high of 17,947.65.
Riding on a massive buying spree, BSE even clocked a market valuation of a thrilling more than Rs263 lakh cr in the early deals before correcting. Notably, in a matter of a week, BSE has witnessed over an Rs7.5 lakh cr rise in its valuation. On September 20, the exchange's market cap was above Rs255.47 lakh cr.
At around 11.47 am, Sensex traded at 60,189.04 higher by 303.68 points or 0.5%. Nifty 50 performed at 17,901.35 up 78.40 points or 0.44%.
At the current market price, BSE's market valuation is above Rs262.57 lakh cr.
A host of reasons have lifted Sensex today to new levels. Firstly, the large-cap stocks were in the fast lane. On Sensex, top bulls were - Asian Paint surging 4.4% followed by Bharti Airtel and HCL Tech climbing 3.5% and 2.7%. Infosys and M&M zoomed 1.7% each, while Maruti Suzuki and HDFC Bank zoomed 1.5% and 1% respectively.
Stocks like Bajaj Auto, L&t, TCS and Power Grid added to the gains by jumping between 0.5-1%.
Secondly, the IT stocks led a sharp rally and drove benchmarks. BSE IT has clocked a new high of 36,619.39.
Thirdly, markets tracked a positive Wall Street of overnight after a hawkish stance from the US Federal Reserve who held the benchmark interest rate near zero but also signalled for a rate hike sooner than expected compared to the previous target of three months ago. Also, the Fed has indicated to likely commence slowing the pace of bond purchases soon if the economy continues to improve.
Further, in India, the festive season has taken centre stage as growth is expected to double in terms of demand and supply. Furthermore, investors are optimistic about the country's economic recovery prospects with vaccination drive in full swing and the government giving a boost to financially stressed sectors.
Indian markets are also in focus due to PM Narendra Modi's four-day visit to the US where the India-U.S. Comprehensive Global Strategic Partnership will be reviewed.
Also, investors are placing bets on expectations that the Delta variant of the Covid-19 and pandemic-related supply chain will bring in only a temporary setback.