Sensex skyrockets to 75,000 points powered by four key stocks: Report

The Bombay Stock Exchange's benchmark index, Sensex, achieved a historic milestone on April 9, soaring to an all-time high of 75,000 points. This feat was accomplished in just 82 days since it breached the 70,000 mark on December 11, 2023. However, what's particularly noteworthy is that only four stocks have played a pivotal role in propelling the Sensex to this unprecedented summit, reported Moneycontrol.

Accounting for a staggering 60% of the 5,000-point rally in Sensex market capitalization during the past 82 days, these four stocks have witnessed a remarkable surge in their market capitalization, cumulatively amounting to Rs 7.31 lakh crore. Leading this charge is Reliance Industries, which alone contributed over 29% to the rally, as per the MC report.

While the next four stocks together contributed over 27% to the upsurge, it's evident that the lion's share of the gains stemmed from a handful of giants. Interestingly, amidst these gains, a dichotomy emerged within the index, with 12 stocks registering gains of 1-5% while 10 saw negative growth.

Analysts are closely monitoring Reliance Industries (RIL) amid its meteoric rise. Since December, RIL has surged nearly 21%, fueled by expectations of mid-FY25 increases in telecom tariffs, initiatives to bolster 5G monetization, and a favorable oil market impacting its oil-to-chemicals (O2C) ventures. Moreover, RIL's $10-billion investment in renewable energy ventures has stirred investor excitement, with anticipation of high valuations mirroring previous strategic moves.

The bullish sentiment isn't limited to RIL alone. Optimism pervades the broader market, fueled by strong performances in sectors like capital goods, automobiles, banking, and metals. The resilience of the Indian economy, coupled with continued capital inflows into mutual funds and robust domestic investor sentiment, underscores the broader market rally.

However, analysts caution against unjustified valuations in the Smallcap segment, indicating potential risks amidst the euphoria. Nonetheless, as both the Sensex and Nifty trade at fresh record highs, the prevailing sentiment remains bullish, reflecting the underlying strength of the Indian market.