Sensex @ 75,000

Closes at 74,683.7, down 0.08%, after hitting a high of 75,124.28 intraday

THE BSE Sensex created history on Tuesday after it breached 75,000-mark for the first time, driven by anticipation of robust corporate earnings in the January-march 2024 quarter, but pared gains on profit booking.

The 30-share benchmark index closed at 74,683.7, down 58.8 points, or 0.08 per cent, after hitting a record high of 75,124.28 in intraday trades.

The broader Nifty 50 declined 23.55 points, or 0.1 per cent to end at 22,642.75. It touched an all-time high of 22,768.4 during intraday trades.

The Sensex, which was launched on January 2, 1986, with a base price of 100 (base year 1978-19) took 28 years to cross the first milestone of 25,000 on May 16, 2014, after Narendra Modi-led BJP won a clear majority in the Lok Sabha polls.

The index touched an alltime high of 25,375.63 in intraday trades.

It took another seven years to reach the 50,000 mark. The index opened at 50,096.57 for the first time on January 21, 2021, led by a rally in the global stock market after Joe Biden was sworn in as the President of the United States.

The index took almost three years to surpass the 75,000 mark.

“The Indian market reached a fresh intraday peak before seeing profit-booking at higher levels in anticipation of tomorrow’s key US inflation data, which carries weight in determining future rate cuts by the US Fed,” said Vinod Nair, Head of Research, Geojit Financial Services.

Concerns have emerged amidst recent better-than-anticipated US employment and manufacturing data, suggesting a potential shift in expectations regarding rate cuts this year.

Moreover, escalating geopolitical tensions in the Middle East, alongside supply concerns, have propelled crude prices upward, impacting overall market sentiment. In the near term, the focus will shift to Q4 earnings, which will kick off this weekend, he said.

Breaches 50,000 level

Sensex surpasses 75,000 mark intra-day

Source: BSE

In terms of market capitalisation, investors’ wealth eroded by Rs 94,000 crore on Tuesday to Rs 399.92 lakh crore.

On Monday, the combined market capitalisation, or the total value of all listed shares, of the Bse-listed firms reached Rs 400.86 lakh crore for the first time.

“It was expected that the Nifty would reach a new alltime high in the new fiscal year, but the pace of the move has been faster than anticipated,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS.

Going forward, the focus will shift to earnings delivery as the stock prices are factoring in reasonable earnings season expectations. If the earnings season turns out to be disappointing, then the market will correct.

However, if there are more upgrades than downgrades in earnings momentum, the market will continue to move upwards.

Nevertheless, the market may pause or consolidate before taking a direction based on the earnings in the next 20 days, he said.

According to Kotak Securities’ Head of Equity Research Shrikant Chouhan, the benchmark indices hit new all-time highs but failed to sustain at higher levels due to weakness in BFSI and IT stocks.

Among sectors, metals and realty indices outperformed. Although the mid and smallcap indices remained unchanged, a few stocks were seen sliding to their crucial support levels, he said.

“For trend-following traders, 22,770/75,125 would act as a trend-deciding level. Above that, the market can move towards 22,850-22,900-23,000/75,35075,500-75,800,” Chouhan said.

The Bank-nifty managed to surpass an all-time high level of 48,650.

The NSE companies that gained the most included Apollo Hospital, Hindalco Industries, ICICI Bank, Infosys and Bajaj Finserv Ltd.

Foreign portfolio investors (FPIS) net sold Rs 593.2 crore of shares whereas domestic institutional investors bought Rs 2,257.18 crore worth of equities, the BSE’S provisional data showed on Tuesday.