BSE

The headwinds for the markets come from the US 10-year yield rising sharply to 4 per cent, the dollar index rising to 101.7, Brent crude rising above $83 and FPIs selling stocks for Rs 3979 crores in the cash market on Thursday, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

On the other hand, Titan and Tata Motors are down by more than 1 per cent. Since the market has run up too much, too fast, a correction can happen at any time, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. Some profit booking at the present level can be considered, he added.

The initial weakness in the domestic market was driven by anticipated soft earnings in the IT sector and negative cues from the US markets.

Another important trend, hugely significant from the market perspective, is the steady decline in the dollar. Dollar index is now below 100, which is the lowest level since April 21, 2022. This declining dollar is favourable for emerging markets and India being the most-favoured emerging market, the FPI flows are likely to sustain, he added.

IT stocks powered the Sensex rally with TCS, Infosys, Tech Mahindra up by more than 2 per cent. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the ongoing global rally in stock markets will get a further mild boost from the latest US consumer inflation for June which has come at 3 per cent, better than market expectation of 3.1 per cent.

BSE Sensex is up 625 points in a ferocious rally at 66,019 points powered by positive cues from the US market. Sensex was up 586 points at 65,980 points in Thursday morning trade. IT stocks powered the Sensex rally with TCS, Infosys, Tech Mahindra up by more than 2 per cent.

The Sensex of BSE touched a high of 65,672.97 points and Nifty of NSE 19,434.15 points. The Sensex opened at 65,503.85 points and raced up to reach a 52 week high of 65,672.97. On Monday, the Sensex had closed at 65.205.05. points. At the NSE, the Nifty opened at 19,406.60 and flared up to a 52 week high of 19,434.15 points.

The David vs Goliath fight between Sensex and other BSE stocks: But, one puzzle stares us straight in the face. While the Sensex has compounded at an annual growth rate of almost 13 per cent in the last five years, a look at the rest of the BSE stocks outside the Sensex that have been listed for the last five years shows an annual decline of 1.16 per cent.

"Momentum can take the market higher; but at high valuations risk is high. Some presently unknown negative developments can trigger a sharp correction. So, even while remaining invested in the market, investors have to be cautious," V. K. Vijayakumar said. The BSE Sensex scaled mount 65,000 on Monday led by HDFC and Reliance Industries.

Sensex crossed and closed above 64,000 points for the first time on Friday. The latest 5,000-point milestone took place in 443 sessions or 21.7 months, Sriram said. Sensex CAGR as measured by Price Return Index for the past 20 years stood at 15.5 per cent and by Total Return Index at 17.2 per cent.