In a similar trend, the NSE Nifty touched intraday high of 18,876 after opening higher at 18,849 levels. The broader market also witnessed a positive trend, with midcap and smallcap indices rising as much as 1% and 0.8%, respectively.

“Sensex rallying to all-time-high is in tune with the global rally in stock markets. Most markets are at 52- week highs. Last year, global markets had corrected discounting a U.S. recession early this year and its impact on global growth and corporate earnings. But this didn’t happen and markets are compensating for this overreaction of last year,” says V K Vijayakumar, chief investment strategist at Geojit Financial Services.

“In India, a sustained rally beyond the record highs is difficult since valuations are rich. Further rally, beyond a point, will not have fundamental support,” he adds.

Apurva Sheth, head of Market Perspectives & Research, SAMCO Securities says the pace of the market rally has slowed down over the last few weeks, however the underlying momentum is still strong. “We believe that traders can lighten up their long leveraged positions and book some profits in the immediate term. But medium to long term investors must continue to hold on to their positions and use dips to buy more.”

According to Sheth, the pause in interest rates from both the U.S. Federal Reserve and the RBI is a major sign of relief for corporates paying interest cost through their nose. Private and government capex is also at all-time highs which should boost infrastructure spending. This will have a ripple effect and fuel growth.

“We are just months away from India and U.S. elections. We believe the positive momentum should continue as governments generally tend to do everything in their control to keep the market participants happy in order to be re-elected to power,” he says.

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Sensex hits all-time high

Sensex hits fresh all-time high; here’s what propelled the rally