Sensex jumped 3 times from 25,000 to 75,000 in 10 years of PM Modi’s rule

From 25,000, Sensex jumped to 50,000 for the first time in January 2021 - following a gap of nearly seven years.

In the last two terms of the Narendra Modi government, has zoomed 214% and Sensex 210%. With Sensex, (RIL) has been among the biggest gainers with a 577% return. has zoomed 567%, 383%, 355% and L&T 347%.

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Beyond mere numerical value, the 75,000-peak serves as a beacon of optimism, igniting a collective bullish sentiment among investors, said Sarvjeet Singh Virk, Co-founder & MD, Finvasia.

He said the achievement not only reflects past successes but also acts as a springboard for future growth, instilling confidence in investors who are now poised to embrace the promising journey ahead.

The current pace of up move in Sensex and Nifty has been faster than anticipated. In March, foreign portfolio investors net bought stocks worth Rs 24,971 crore, after being net sellers in the preceding two months. Meanwhile, DIIs poured in a whopping Rs 56,312 crore during the same month. This was the highest investment by DIIs since May 2022.

"The main catalyst behind the current uptrend is the hope of a stronger than expected Q4 corporate earnings which is fuelling the market momentum over the past one week. The uptick is equity markets is seen despite a strong momentum in gold, crude and metals, as more than a Fed rate cut expectations going ahead investors are pinning hopes on strong Q4 earnings," said Prashanth Tapse of Mehta Equities.

In the first half of FY25, domestic growth is likely to remain strong on the back of an acceleration in consumption demand amid election-related spending. Hence, the markets are expected to perform well, with high focus on large-caps which are offering better safety margins in earnings as well as valuations," he said.

Analysts say the market may pause or consolidate before taking a direction based on the earnings in the next 20 days.

"Robust economic growth, decent corporate earnings, macroeconomic stability, expectations of political stability after elections, sustained capital flows, and retail investor enthusiasm will keep the market resilient despite rich valuations. A significant recent healthy trend in the market is the outperformance of the fundamentally strong largecaps over the mid and smallcaps. This trend is making the market healthier and, therefore, has the potential to continue. Largecap banking stocks are likely to be the leaders if the rally sustains," said Dr. V K Vijayakumar of Geojit Financial Services.

The next major trigger for the bulls is the March quarter earnings, which will kickstart with Tata Consultancy Services on Friday.

Much of the rally over the last one year in domestic equities was because investors were factoring in strong earnings growth. If the earnings season turns out to be disappointing, then the market is likely to correct.

Besides earnings, the outcome of the Lok Sabha election on June 4, actions by central bankers in India and the US, and the monsoon trajectory are also likely to impact Sensex mood.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)