Such a boom of the stock market would not have been seen, but just one thing will put you in worry!

Sensex and Nifty closed at a record high level for the fourth consecutive day on 4th July. The Sensex closed up 274 points at 65,479.05. The Nifty also closed at a record high of 19,391.35, up 68.8 points

There is so much buying going on in the Indian stock market that both benchmark indices are continuously moving forward. A day earlier i.e. on July 4, the Sensex and Nifty closed at record-high levels for the fourth consecutive day. The Sensex closed up 274 points at 65,479.05. The Nifty also closed at a record high of 19,391.35, up 68.8 points. The Sensex crossed the figure of 64 thousand for the first time on 28 June. Then on July 3 crossed the level of 65 thousand. Whereas, Nifty crossed the level of 19 thousand for the first time on 28th June.
Benchmark Index i.e. Sensex and Nifty. Sensex is an indicator of the top 30 companies registered on the Bombay Stock Exchange (BSE). Nifty is an indicator of the performance of the top 50 companies registered on the National Stock Exchange (NSE).

What is the reason?
There are many reasons behind the growth seen in the domestic stock market. Improvement in big and small figures related to the economy. Good results of companies and signs of a better situation regarding inflation in foreign markets. All the reasons are showing a positive effect on the Indian stock market.

Nitin Kedia, Founder, of Kedia Fincorp told The Lallantop,

“All the figures related to the economy in India are coming good. GST collection remains strong. So far the rain report has been good. Consumption among people is increasing tremendously. Full hotel rooms and high air ticket prices are proof of this. There has also been considerable growth in the sale of vehicles. Banks are getting more demand for loans, which shows that people are spending freely. Overall, all the wheels of the economy have started turning at a great speed.
Talking on foreign stock markets, he said that the central bank in America was increasing the interest rates very fast. Due to this foreign investors were pulling money from Indian markets. But now it is being speculated that the Federal Reserve will only increase the interest rates marginally. From 2024, a phase of reduction in interest rates can also be seen. This is the reason why foreign investors are continuously investing in Indian markets. According to stock exchange data, foreign portfolio investors bought shares worth Rs 52,366 crore in June. This is the highest since August 2022. In the Asian markets, there are signs of improvement in the economy of China and Japan.

From the domestic market, the signals of the economy coming back on track from neighbouring markets and developed markets are boosting the market. Kedia said that the banking and auto sector companies have the biggest stake in this boom. Going forward, if the rains have any adverse effect on the production of crops, then the market rally may stop.