Business News: Both the BSE Sensex and Nifty 50 continued their remarkable upward trajectory on Tuesday, marking a historic fourth consecutive session of all-time highs before closing flat. This rally has been significantly fueled by last weeks interest rate reduction in the United States and the robust performance of domestic commodity-related firms following Chinas announcement of new stimulus measures.Key milestones achievedThe BSE Sensex surged over 200 points, crossing the pivotal 85,000-mark for the first time, reaching an intraday high of 85,163, an increase of 234.62 points. Simultaneously, the Nifty achieved its record high at 26,011.55. However, both indices retreated from their peaks, ultimately settling flat on the BSE and NSE.In 2024, the Nifty 50 and S&P BSE Sensex have emerged as two of the best-performing global stock indices, trailing only the Nasdaq and S&P 500. The Nifty has experienced an impressive 18.7% surge this year, while the Sensex has gained 17%, placing them third and fourth among major global stock markets. Analysts anticipate that this rally will continue into 2025, buoyed by foreign inflows and favorable domestic economic conditions.Indias growing influence in global marketsThis market rally signifies Indias increasing stature in the global financial arena, particularly as it overtakes China in weightage within a key MSCI index for the first time. With India becoming one of the most expensive emerging markets globally, the sustained growth trajectory may attract more foreign investment, thus bolstering economic growth and mitigating global risks like inflation and geopolitical tensions.Retail investor enthusiasm and challengesThe excitement surrounding Indias stock market is not limited to major metropolitan areas it has spread to smaller cities as well. Local investors, including retail and institutional buyers, have poured a net $51 billion into shares this year, pushing markets into overbought territory. However, analysts warn that inflows of $7.5 billion per month from domestic sources may be unsustainably high.Despite the opportunities presented by the stock market boom, vulnerabilities remain, particularly among retail investors in high-risk futures and options segments. A recent study revealed that 93 out of 100 retail traders in this area have incurred losses between FY22 and FY24. As Indias stock market enthusiasm grows, theres a pressing need for enhanced financial education and regulatory oversight.
