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The rally in the Indian stock market on Monday was supported by strong gains in banking, financial services and IT stocks read more
 "Stock market upbeat ahead of LS poll results; Sensex over 76,000-mark, Nifty 23,100")
Both the benchmark indices- NSE Nifty 50 and BSE Sensex- recorded fresh lifetime highs on Monday. Source: PTI
The Indian equity benchmark indices – BSE Sensex and Nifty 50 – surged on Monday, once again hitting a lifetime high, barely a week ahead of the decaration of the results of 2024 Lok Sabha election, on June 4.
In the early trading hours on Monday (May 27), the BSE Sensex breached the 76,000-mark for the first time, hitting a new all-time high of 76,009.68. It was up over 500 points.
Meanwhile, NSE Nifty 50 surpassed 23,100 levels to set a new peak of 23,110.8.
At 14:36 IST, BSE Sensex was trading at 75,756.23, up 345.84 or 0.46 per cent, while Nifty 50 was up 82.80 points or 0.36 per cent at 23,039.30.
The rally on Dalal Street on Monday was supported by strong gains in banking, financial services and IT stocks.
Why Sensex and Nifty are touching record highs?
Last week and again at the beginning of this week, Sensex and Nifty touched new record highs, getting fillip from multiple factors.
1 - Optimism about Lok Sabha election 2024 results
Investors’ confidence remain high ahead of the general election 2024 results. There is an optimistic sentiment, with the market largely predicting that the BJP-led NDA will emerge victorious and return to power for a third consecutive time when the results are announced on June 4.
The Indian stock market is seeing the BJP emerging as the single largest party and returning to power. If the scenario remains favourable, they are confident that there will be policy continuity and the possibility of further reforms including disinvestment, the land bill, and the uniform civil code.
2 - Sharp decline in FII selling
Foreign Institutional Investors’ (FIIs) selling has declined sharply and since last Thursday, they have turned into big buyers. So far in May, FIIs have net sold Indian equity worth Rs 22,046 crore, which severely weighed on the sentiment of the Indian market.
3 - Expectations of Fed rate cut
Asian shares are also trading high on expectations of a Federal Reserve rate cut this year, with the US inflation data due this week likely indicating easing price pressure. Investors are hopeful that the Fed, the European Central Bank and its peers, will reduce interest rates this year.
4 - 215 stocks hit 52-week high levels on Sensex
On Monday, 215 stocks hit their 52-week high levels. BSE 500 stocks such as Aditya Birla Fashion and Retail Ltd, Adani Ports, Aegis Logistics, Amara Raja Energy & Mobility Ltd, Ashok Leyland, BEL, Bharat Forge, Airtel, Bosch, Cochin Shipyard, Divi’s Labs and Exide Industries hit their respective one-year high levels.
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