Sensex Breaches 95,000 Mark for First Time as FII Inflows Surge

The BSE Sensex crossed the historic 95,000 level for the first time on Wednesday, driven by massive foreign institutional investor (FII) inflows and strong quarterly earnings from banking and IT heavyweights. The benchmark index closed at 95,234.67, gaining 847 points or 0.90% on the day, while the NSE Nifty50 settled at 28,890.15, up 256 points.

What's Driving the Rally

FIIs have been net buyers for 18 consecutive sessions, pumping in over Rs 45,000 crore into Indian equities this month alone. Analysts attribute the buying spree to India's resilient GDP growth of 7.2%, easing global interest rates, and improving corporate earnings visibility. The IT sector led the charge, with TCS and Infosys both reporting better-than-expected quarterly results.

The banking sector also contributed significantly, with HDFC Bank, ICICI Bank, and SBI all hitting fresh 52-week highs. The sector has benefited from improving asset quality and strong credit growth of 16.8%, the highest in five years.

"India remains the brightest spot in the emerging market universe. With strong macro fundamentals, political stability, and a demographic dividend, we expect the structural bull market to continue," said Mark Mobius, veteran emerging markets investor.

However, market experts have cautioned about stretched valuations, with the Nifty50 trading at a price-to-earnings ratio of 23.4, well above its 10-year average of 19.2. Some analysts recommend profit-booking in momentum stocks while maintaining long-term positions in quality large-caps. The small and mid-cap segments have already seen some correction from their recent highs.