Indian Markets Soar to New Heights: Nifty 50 and Sensex Hit All-Time Highs

Indian markets surged to new all-time highs on Monday with both Nifty 50 and Sensex indices posting impressive gains in the opening session. Boosted by high foreign inflows, analysts remain optimistic about continued upward momentum despite overbought levels. Asian markets also saw gains, while European and US markets faced declines.

Indian markets kicked off the new week on a high note as both the Nifty 50 and Sensex achieved fresh all-time highs in Monday's opening session. The Nifty 50 index reached a new 52-week high, starting at 25,872.55, up by 81.60 points or 0.32 per cent. Sensex also surged, opening at 84,651.13, gaining 106.82 points or 0.13 per cent, and shortly after hitting its own new all-time high of 84,843.72 points.

Both indices sustained their record levels thanks to a bullish trend driven by substantial foreign inflows into Indian equities. Experts credit this bull run largely to the high Foreign Institutional Investors (FII) inflows and express optimism that the markets will maintain their upward trajectory if these inflows persist. "Indian markets are set for further gains backed by massive FII inflows seen on Friday and favorable global cues. However, caution is advised given the overbought market conditions, which have elevated valuations," said Ajay Bagga, a banking and market expert. He added, "Asian markets are mixed, with Japan closed for a holiday. Indian stock futures are showing a strong start today, but some profit booking might occur due to overbought levels. Nevertheless, strong FII allocations could absorb this and allow markets to continue their ascent."

Among sectoral indices on the NSE, Nifty Realty led the robust performance with a gain of 0.98 per cent. Conversely, Nifty IT and Nifty Private Bank saw marginal declines at the time of reporting. Asian markets also logged gains on Monday. Hong Kong's Hang Seng index increased by 0.84 per cent, Taiwan's Weighted index gained 0.38 per cent, and South Korea's KOSPI index rose by 0.28 per cent. However, Japan's markets remained closed for a public holiday.

In stark contrast, European markets closed with losses on Friday. The UK's FTSE index fell by 1.20 per cent, France's CAC index dropped by 1.54 per cent, and Germany's DAX index closed down by 1.51 per cent. Similarly, the US markets experienced selling pressure on Friday, with the S&P 500 slipping by 0.19 per cent, and the Nasdaq closing down by 0.36 per cent.

(With inputs from agencies.)