Sensex Crosses 85,000 After 14 Months

After almost 14 months, the Sensex returned to 85,000, ended at 85,187, up 514 points or 0.6%. It has not closed lower since September 27, 2024. Both indices are currently nearing new all-time highs. The Nifty also increased, closing at 26,053, up 143 points or 0.6%.

Technology companies drove the rally, with the Nifty IT index rising 3%, its highest single-day gain since May 12. Strong increases were made by big IT firms like Tata Consultancy Services, Infosys, and HCL Technologies. Despite a worldwide sell-off in tech equities due to worries about valuations, this increase occurred. Investors are drawn to India's IT business as a result of the world's shift away from the artificial intelligence (AI) trade.

The market's momentum was also boosted by domestic earnings and hope for a possible trade agreement between the US and India. While small and mid-cap equities experienced some selling pressure, financial and PSU bank stocks contributed to the gains.

According to experts, the decline in the worldwide AI rally is causing money to be reallocated to traditional IT services in India, which are thought to be more properly priced. The market's breadth was mixed, with more equities falling than rising, but the overall advance was bolstered by the robust performance of large caps and IT firms.

Investors are hopeful about future gains as the Sensex and Nifty approach all-time highs, supported by consistent profitability, a favorable economic outlook, and improved global conditions.