Nifty hits 11,000 for first time ever, jumps 1000 points in 75 sessions

The domestic markets hit fresh lifetime highs on Tuesday with the Nifty moving past its crucial 11,000 mark and Sensex mount 36,000 for the first time ever. The Nifty50 took 75 sessions, while the Sensex just 4 sessions to rally 1000 points to touch their respective fresh milestones. 

In intraday trade, the 30-share Sensex advanced as much as 254 points to its lifetime high of 36,051.86, while the 50-share Nifty gained 74 points to its new high of 11,045.60.  

The Nifty50 had hits its previous milestone of 10,000 on July 25, 2017. As many as 23 stocks rallied over 10 per cent during the same period. 

These include Tech Mahindra, Tata Steel, Maruti Suzuki, GAIL (India), ONGC, Reliance Industries and TCS. 

At least 11 stocks quoted negative, losing in the range of 2 per cent and 17 per cent. These include, Bharti Infratel, Bosch, Lupin, Aurobindo Pharma, and Power Grid etc. 

Amish Munshi, director at WINSOL Investment Advisers, believes valuations have turned expensive, but market doesn't look over-heated. 

"I don't think market is overheated. Of course, valuations are trading above the long-term averages, but we should also see Indian markets are moving in tandem with the global markets. Just yesterday IMF upgraded country's growth forecast. That said, investors should stay invested, keeping long-term view," Munshi said.  

Rahul Arora, CEO - Institutional Equities at Nirmal Bang Securities, advised caution at these levels, looking at expensive valuations.

"Analysts are valuing stocks at FY20 earnings. Rating them even on one-year forward earnings has turned difficult. I don't say that money can't be made at these levels, but caution is key here because stock market and bond market are moving in opposite direction. We don't know when and what would trigger the correction, but it's not a bad idea to book some profits and stay on the side lines now," he said.   

Saurabh Mukherjea, CEO, Ambit Capital although believes earnings growth looks set to improve in FY19 for the first time in five years, but accepted that valuations are running higher. He expects the bull frenzy to last for the next six-12 months.