What Brokers Make Of The Sensex At Record Highs? Is There More Steam Left?

The Sensex today surged to a new record high of 63,558 points after strong buying demand witnessed in HDFC group stocks and Reliance. The benchmark index has now surged from 1000 points hit on 25 July 1990 to a new record high. In fact, it has now taken just 5 years for the Sensex to double from 31,000, hit on 26 May 2017 to 63,558 points today. Under the bluechip index, Power Grid, HDFC Bank, HDFC, Bharti Airtel, and Wipro were the top 5 gainers and Axis Bank, M&M, Maruti Suzuki, ITC and Bajaj Finance were the top 5 losers during the afternoon trade.

Experts View

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said,"Sensex rallying to an all-time-high is in tune with the global rally in stock markets. Most markets are at 52-week highs. Last year, global markets had corrected discounting a US recession early this year and its impact on global growth and corporate earnings. But this didn't happen and markets are compensating for this overreaction of last year., In India, a sustained rally beyond the record highs is difficult since valuations are rich. The further rally, beyond a point, will not have fundamental support."

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd said "The Sensex approached an all-time high at 63587.70 on Wednesday, demonstrating remarkable strength by achieving a new record level. This milestone suggests a positive sentiment among market participants and indicates the potential for further upward movement. However, it is essential to closely monitor the trading volumes to understand the market's behaviour as the market tends to face profit booking activity near record-high levels which remain short-lived usually."

A R Ramachandran, Co-founder & Trainer - Tips2trades said "Despite Sensex hitting an all time high, overall market seems overbought. Except private sector banks & IT, the rest of the sectoral stocks could see a correction."

On the sectoral front, NIFTY Bank, Auto, Nifty Financial Services, Nifty IT, Pharma, and PSU Bank were in green while in the broader market Nifty Mid Cap 50 rallied 0.95%, Nifty Midcap 100 zoomed 0.92% and Nifty Smallcap 100 gained 0.41%, during the afternoon deals.