Sensex crosses 60K to reach life high in early trade

The BSE Sensex touched the 60,000-mark on Friday to even touch a high of 60,333 with Asian Paints, Bharti Airtel and HCL Tech leading the index.

Bharti Airtel, HDFC Bank and Tata Steel are among the top in terms of volumes.

“We are in a classical bull market like the 2003-2007 phase where this bull run is likely to continue for the next 2-3 years. However, I will put a word of caution after a parabolic move in lats few days because short term correction can't be ruled out in coming days”, says Santosh Meena, Head of Research, Swastika Investmart Ltd. “Global indices like Dow Jones and Dax are near to their critical resistance and may witness a correction from here.”

“We are in a strong uptrend and outperforming global markets while some mean reversion can be seen in the coming days where rising crude oil prices and surge in US bond yield could cause near-term volatility”, he adds.

Analysts add that the expectation of economic recovery and sustainable growth are moving the markets.

“From the global funds’ perspective, India remains an attractive destination, especially in the China+1 scenario. Having said that, retail investors must have a diversified portfolio at this stage to face any kind of volatility”, says Sandeep Bharadwaj, CEO, Retail, IIFL Securities.

Similarly, Nifty soared 100.40 points or 0.56 per cent to its intra-day record of 17,923.35 in initial deals.

It took little over 31 years for the Sensex to traverse from 1,000 points to the historic 60,000 level.

The benchmark index was at 1,000 points back on July 25, 1990 and took nearly 25 years before it touched the 30,000 mark on March 4, 2015.

The Sensex has climbed from the 30,000 level to 60,000 in little over six years, reflecting the overall bullishness in the market.

Infosys was the top gainer in the Sensex pack, rising over 2 per cent, followed by L&T, HCL Tech, Asian Paints, TCS, Tech Mahindra and HDFC Bank.

On the other hand, NTPC, HUL, Bajaj Finance and Bajaj Finserv were among the laggards.

In the previous session, the 30-share index zoomed 958.03 points or 1.63 per cent to end at an all-time high of 59,885.36, and Nifty soared 276.30 points or 1.57 per cent to its new closing high of 17,822.95.

Foreign Institutional Investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 357.93 crore on Thursday, as per provisional exchange data.

"Sensex has hit the 60,000-mark today. Reaching this milestone is quite an achievement in these Covid times and a shot in the arm for bulls that are in total control of this market," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The outperformance of India during September so far is stunning with MSCI World Index down 2.13 per cent and Nifty up by 4.03 per cent, he said, adding that the poor performance of the Shanghai Composite due to regulatory crackdown and the China Plus One policy have again made India an attractive investment destination for FIIs.

Elsewhere in Asia, bourses in Shanghai, Seoul and Hong Kong were trading with losses in mid-session deals, while Tokyo was positive.

US equities ended with gains in the overnight session.

Meanwhile, international oil benchmark Brent crude rose 0.09 per cent to $77.32 per barrel.

(With PTI inputs)

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