Benchmark indices reached their all-time highs during the early trading session on Monday. While Sensex surpassed the 70,000 mark, Nifty50 reached a record high of 21,026.
Last week marked a stellar period for domestic markets, characterized by a bullish surge across indices. The optimistic tone was set by encouraging Q2 GDP estimates and the BJP's decisive electoral victory. After hitting a pause on Thursday, the positive momentum was reinforced on Friday, by the Monetary Policy Committee's favorable stance on the repo rate and better-than-expected growth numbers.
"Several factors contributed to this remarkable performance. One key driver was the resounding victory of the Bharatiya Janata Party (BJP) in the recent state elections, which boosted investor confidence in the stability and continuity of the government's economic policies," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
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On the global front, the decline in crude oil prices has bestowed a crucial respite upon the Indian economy. The depreciation of the US dollar index and diminished US bond yields have further added positive momentum to investor sentiment. This shift has made Indian equities more attractive as compared to their global counterparts, reinforcing positive market dynamics.
At 03:10 pm, Sensex was up by 135 points or 0.19 per cent, hitting a fresh 52-week high. The Nifty50, was up by 33 points or 0.16 per cent, at 21,002 mark.
On the domestic front, India will be releasing key economic indicators this week such as the Index of Industrial Production (IIP) and Consumer Price Index (CPI).
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