Sensex crosses 57,000; Nifty crosses 17,000 for the first time

At closing, Sensex rose 1.16% to hit a new record high of 57,552.39 points, while Nifty rose 1.19% to hit a new high of 17,132.20. Both the indices took 19 trading sessions to rally to the latest 1,000 points.

Deepak Jasani, Head of Retail Research, HDFC Securities said, “Stock markets set new record highs… There is confidence of an ongoing economic recovery and the withdrawal of its stimulus by the Federal Reserve will not lead to a fall in asset prices anytime soon. “

Both Sensex and Nifty rose 9.5% and 8.7% respectively in August for the fourth consecutive month, which is the best monthly gain for the indices since November 2020.

The rupee strengthened by 73 points in intraday and settled at 73.01 per dollar, up 0.4% from its previous close. In August, the greenback jumped nearly 2%, posting its best gains since May and ranking among Asia’s best-performing currencies for the month.

“Festival season has started in India and Indian equity markets too. Santosh Meena, Head of Research, Swastik Investmart said, Equity markets are showing strong resilience and are climbing all walls of worry which is a clear sign of a strong bull market.

The Indian economy is meanwhile witnessing a strong recovery from the turmoil caused by the second wave of COVID-19. Analysts said the country may not be as vulnerable to a potential third wave as had previously expected progress on vaccination.

Government data released on Tuesday showed India’s gross domestic product (GDP) jumped a record 20.1% in the June quarter, bouncing back from a sharp contraction of 24.4% in the same period last year. The June quarter GDP performance improved with growth of 0.5% and 1.6% in the March and December quarters, respectively.

According to analysts, most central banks globally are supporting their economies through easing monetary policy, while the US Fed continues its sluggish stance, lowering US bond yields and pushing a weaker US dollar forever. Emerging markets like India are considered positive.