New Delhi. On the back of a continuous rise in the stock markets, the market capitalization of all the companies listed on the BSE has reached a new high of Rs 460.91 lakh crore or $ 5.50 trillion. On Tuesday, the BSE benchmark index Sensex closed at an all-time high of 81,455.40 with a gain of 99.56 points. During the day's trading, the Sensex reached a high of 81,814.27 points.

Similarly, the NSE Nifty rose 21.20 points to close at an all-time high of 24,857.30. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that continued capital inflows into mutual funds and enthusiasm from retail investors will keep the market resilient. He said that high valuations remain a matter of concern. Buying of high quality stocks with good earnings potential is strengthening the markets.

What is the reason for the rise in the stock market

There are many reasons behind the amazing rise in the stock market. Such as the return of the Narendra Modi-led NDA government to the central government and the positive environment in the global markets. Foreign portfolio investors (FPIs) are also returning to the Indian market. Also, the strong earnings of companies have also encouraged investors.

Domestic investors are also continuously buying in the market. Especially, as per the policy of buying on dips. The growth prospects of the Indian economy are also quite strong. The monsoon is also expected to be better than normal. Due to all this, the stock market is witnessing a boom.

However, many analysts are cautious due to high valuations and weak earnings in the June quarter. According to a report by Kotak Institutional Equities, the net profit of Nifty-50 companies in the June quarter increased by an average of just 0.7 per cent. Also, their volume growth is sluggish and margins are softening. Some weak-performing sectors have seen a rapid rebound, which has made things even more complicated.