Sensex Hits Record High as RBI’s Growth Forecast Sparks Market Rally

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  • Sensex Soars to New Heights
  • RBI’s Growth Projection Boosts Sentiment
  • Sectoral Surge Led by Interest Rate Sensitive Stocks
  • Tech and Banking Stocks Lead the Charge
  • Real Estate and Auto Sectors Shine
  • Political Controversy on stock market crash on Election result day.
  • Rahul Gandhi demanded a JPC probe.

The Sensex, India’s benchmark stock index, surged to unprecedented heights, marking a remarkable recovery from recent setbacks triggered by political developments and election uncertainties. The surge came on the heels of the Reserve Bank of India’s (RBI) optimistic GDP growth forecast for the fiscal year 2024-25, which instilled renewed confidence in investors and sparked a widespread market rally.

The S&P BSE Sensex skyrocketed by over 1,600 points, breaching the historic milestone of 76,000 to reach an all-time high of 76,795.31. Similarly, the NSE Nifty50 surged by 2.07% to 23,294.2, reflecting the broad-based nature of the market rally.

The driving force behind the market euphoria was the RBI’s upward revision of its GDP growth forecast for FY25, projecting a robust growth rate of 7.2%, up from the previous estimate of 7%. The central bank’s decision to maintain interest rates at 6.5% for the eighth consecutive time further fueled investor optimism.

Sectors sensitive to interest rates, including banking, finance, automotive, and real estate, witnessed substantial gains, with stock prices soaring by as much as 8%. The total market capitalization of all BSE-listed companies surged by Rs 7.68 lakh crore, reaching an impressive Rs 423.57 lakh crore.

IT giants such as Wipro, Infosys, Tech Mahindra, TCS, and HCL Tech registered significant gains, propelling the tech sector to the forefront of the market rally. Banking stocks, including Bandhan Bank, Federal Bank, AU Small Finance Bank, Axis Bank, ICICI Bank, and Bank of Baroda, also saw substantial increases, contributing to the overall market surge.

The real estate sector witnessed a surge of up to 8% in stock prices following the RBI’s decision to maintain interest rates, with companies like Sunteck Realty and Sobha leading the gains. Similarly, Nifty Auto stocks climbed by up to 2.5%, with Mahindra and Mahindra emerging as top performers with a surge of 5.38%.

The market rally came amidst a backdrop of political controversy, with Congress leader Rahul Gandhi demanding a joint parliamentary committee (JPC) probe into the stock market crash on election result day. Despite the political noise, investor wealth soared by around Rs 28 lakh crore over the past three days, with the combined market capitalization of all BSE-listed stocks reaching Rs 423.2 lakh crore.

While concerns over political uncertainties lingered, foreign investors viewed the market correction as an opportunity to capitalize on India’s long-term growth potential. The surge in investor confidence underscored the resilience of India’s stock market, which remained buoyant despite political turbulence and external pressures.


(With inputs from agencies)

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