Why have the Sensex and Nifty attained all-time highs?

At 9:30
a.m., the Sensex first exceeded 65,000 after gaining more than 300 points, and
the Nifty 50 reached a new record high after gaining 94.20 points.

The top
five gainers on the Nifty 50 were HDFC, JSW Steel, Grasim, and Eicher Motors,
followed by HDFC Bank. On the other hand, the leading losers were Power Grid
Corporation, HDFC Life, Maruti, Sun Pharma, and UPL.

The
benchmark experienced its strongest week in over 11 months, and gains have
continued for the fourth consecutive month. 

Read also this: In June, manufacturing in India grew at its second-fastest rate this year

But what is driving the surge in the stock market? Here are some justifications:

• Positive
  economic conditions from the United States propel Indian stock markets.
• The
  improvement in the performance of information technology (IT) stocks is a
  significant factor in India’s benchmark indices attaining new record highs.
• Since
  the IT industry relies significantly on clients from the United States, the
  release of positive economic data from the world’s largest economy has
  alleviated fears of a slowdown and boosted market sentiment.
• Positive
  economic indicators such as a rise in GDP for the first quarter, a decline in
  unemployment claims, and successful stress tests conducted by the Federal Reserve
  have alleviated fears of an economic slowdown, thereby improving the markets.

Auto assets are driving the
increase.

With an
increase of over 2%, the automotive industry reached new all-time highs.

Ahead of
the publication of June sales data, auto stocks such as Mahindra &
Mahindra, Hero MotoCorp, and Maruti Suzuki emerged as the top gainers among the
Nifty 50.

The domestic market boosted the
optimism.

Further
confidence in the Indian equity market has been bolstered by robust foreign
inflows, moderate inflation, and consistent growth in corporate profits.

Positive
macroeconomic fundamentals have attracted more than $3.5 billion in capital
inflows.

This has
also contributed to the strengthening of the rupee, which reached its highest
level since January when it closed the day at 82.0375 per dollar, up from
82.0550 the previous session.

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