Market hits record highs: Sensex, Nifty start FY25 on a high note: Key reasons behind this jump

Indian equity benchmarks stepped into financial year 2024-25 (FY25) in style, scaling their fresh lifetime peaks. The 30-share BSE Sensex pack jumped over 600 points to hit a record high of 74,255 and the broader NSE Nifty index moved around 200 points to touch 22,530 level for the first time ever. 

Such was the rise in the domestic bourses that more than Rs 5 lakh crore of BSE market capitalisation (m-cap) was generated. Investor wealth, as suggested by the BSE m-cap, rose Rs 5.26 lakh crore to Rs 392.23 lakh crore compared with a valuation of Rs 386.97 lakh crore recorded in the previous session.

Domestic benchmarks closed fiscal year 2024 with gains. Nifty50 rose about 29 per cent while Sensex added 25 per cent in FY24.

Here are the key reasons behind the stock market rise:

Metal & realty stocks shine

All 15 sector gauges -- compiled by the NSE -- closed in the green. Sub-indexes Nifty Metal, Nifty Realty and Nifty Media outperformed the NSE platform by rising as much as 2.75 per cent, 3.94 per cent and 2.60 per cent, respectively.

"The undertone of the market is bullish and there is momentum in the market. This upward momentum can sustain," said VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The RBI monetary policy meet scheduled for April 3 to 5 is likely to keep rates unchanged and, therefore, is unlikely to impact the market, Vijayakumar added.

Global cues

Most Asian markets were trading higher today after data showed US inflation eased in February. Fed Chair Jerome Powell said that the latest inflation reading was in line with the central bank's expectations.

FII-DII data

Foreign institutional investors (FIIs) bought Indian shares worth Rs 188.31 crore on a net basis during the previous session and domestic institutional investors (DIIs) purchased shares worth Rs 2,691.52 crore.