Sensex Goes Beyond 52k Mark

The stock market soared to all-time closing highs with the Sensex crossing 52,000 for the first time ever, mirroring the continued strength in global equities. Banks led market upsides after consumer inflation in January softened to 4.06%, the lowest since September 2019, raising hopes that the Reserve Bank of India will continue its easy monetary policy for the time being.

The BSE Sensex rose 609.83 points, or 1.18%, to close at 52,154.13 after touching a record high of 52,235.97. The NSE Nifty gained 151.40 points, or 1%, to end at 15,314.70. The index had hit an all-time high of 15,340.15 earlier during the day.

Fund managers said the record breaking run had raised concerns over an overheated market but surprise profit growth by companies in the December quarter has partially doused such worries.

The better-than-expected profit growth has eased fears that the run-up in the stock market is entirely fuelled by strong flows from foreign investors armed with cheap money thanks to near-zero interest rates in developed markets.

Elsewhere in the world, Asian and European markets rose on Monday with Japan’s Nikkei 225 surging past the 30,000 level for the first time in over 30 years. The Euro Stoxx 600 index was up 1% in afternoon trade. South Korea’s Kospi jumped 1.5%. Markets in China, Taiwan, Hong Kong, and the US were closed on Monday for holidays.

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