Sensex opens at record high above 80,300, makes shortest 10,000-point run from 70k to 80k

Stock Market today: The Benchmark S&P BSE 30 index opened well above the 80,000 mark on Thursday at around 80300. The Sensex also had briefly crossed the 80000 mark on Wednesday. With this the Sensex has taken shortest span of close to 138 sessions to gain 10,000 points from 70k to 80k. The Sensex had crossed the 70k mark on 11 December 2023 and has been the fastest 10,000 points journey.

Fastest 10,000 point rally

The Sensex that had touched 70057.83 mark on 11 December’2023 had managed to cross 80,000 mark and touch 80074.30 levels on 3rd July’2024. Though the sensex on Wednesday ended below the 80k mark. however on Thursday comprehensively breached and opened well above the 80k mark.

Sensex 10,000 point rally, the fastest

The 10000 point rally from 70k-80k remains the shortest run, considering the fact that Sensex had crossed 60k mark in September 2021 and 50k mark in January 2021. The Sensex was at 40k in-June 2019 and 30k in March 2015.

Sensex doubled in slightly more than 5 years

Value Research data showed that the Sensex that had touched 40000 mark on 3 June’ 2019 and crossed the 80k mark on 3rd July 2024, took sightly more than 5 years to double.

However Sensex had taken very long to rise from 20k to 40K levels impacted by the global financial crisis. Sensex that had touched 20000 level on 11 December’2007, could reach 40000 by 3rd June 2019.

Nevertheless prior to Global Financial crisis , the Sensex had moved from 10k ( 7 February’2006) to 20k (11, Dec’2007) in less than 2 years.

Overall Sensex has grown around 16% CAGR over 45 years.

What has been driving the rally

The supportive global data and monsoon progress in the country have added to confidence of investors as the Sensex opened more than 300 points higher on Thursday.

In the US , the Bond yields have softened as the Federal Reserve’s case for starting rate cuts this year has been reinforced by a string of weaker economic data. Surprisingly, the U.S. ISM measure of services activity dropped to its lowest point since mid-2020, and employment data came weaker than expected. The markets will be watching for the June payrolls report due on Friday.

The lower bond yields and interest rate cut expectations in the US will also remain supportive for FPI (Foreign Portfolio Investors) remaining buyers in the markets. The FPI flows have turned positive in June and can gain further momentum, since lower interest rates in the US, weaker US bond yields, and softer dollar will make investments in the emerging markets as India, attractive for te Foreign funds.

HDFC Bank, which is anticipated to get $3 billion in passive fund inflows has been a key driver for gains in the recent few sessions. Significant gains were seen in the banking and private banking sectors, and sustainable returns are being indicated by the fair valuations, they have been trading at.

Key Stocks that drove the 1000 point rally

Mahindra & Mahindra, Adani Ports and special Economic zone, Power Grid Corporation of India, Bharti Airtel and State Bank Of India have been largest gainers, having risen 36-74% and remained key drivers of the 10,000 point rally in the Sensex

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions

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