The BSE Sensex breached the historic 85,000 mark on Wednesday, closing at 85,247 after a rally led by banking, FMCG, and IT stocks. The milestone was driven by record FII inflows of Rs 18,400 crore in one week, strong Q1 earnings beating estimates across 62% of Nifty 50 companies, and global optimism after the US Federal Reserve signalled rate cuts. The Nifty 50 also hit a record at 25,842.
India market cap crossed $4 trillion, making it the fourth-largest stock market globally. Retail investors reached a new high with 8.7 crore active demat accounts. Finance Minister Sitharaman said the milestone reflects confidence in India macroeconomic fundamentals and fiscal discipline. Analysts cautioned that near-term volatility is possible given stretched valuations across several high-growth sectors.