Desi money does all the power lifting this time
Sensex's ascent from 60,000 to 70,000 was not a one-sided move with the index taking nearly 551 sessions to move up 10,000 points.
In contrast, the Sensex completed the journey from 50,000 to 60,000 in 158 sessions.
More importantly, the latest 10,000-point Sensex rally was purely driven by domestic money.
Domestic institutional investors (DIIs) have put in ₹5.23 lakh crore in stocks since September 24, 2021.
Foreign portfolio investors (FPIs) were net sellers to the tune of ₹70,000 crore during this period.
The journey from 60,000 to 70,000 happened amid the US Federal Reserve's most aggressive monetary tightening in decades to curb inflation and lingering geopolitical tensions.
The pace of Sensex's upmove to 70,000 quickened in the previous one-and-a-half months following the decline in US bond yields, softening of the dollar and more recent BJP's strong victories in the recent state elections.
«The election results in three out of four key states have raised the expectations of policy continuity in 2024, boosting market confidence,» said Pranav Haridasan, CEO of Axis Securities. «We can see a further new high in the market if the bond yields and the crude prices remain at the same levels for the entire month.»
