The BSE Sensex breached the 85,000 mark for the first time on 12 March 2026, closing at 85,247 with a gain of 612 points. The Nifty 50 simultaneously crossed 25,800, marking new all-time highs for both benchmark indices. The rally was broad-based, with 38 of the 50 Nifty constituents closing in the green.
What Drove the Rally
Three factors converged to push markets to new highs. First, Foreign Institutional Investors (FIIs) turned net buyers in March, pumping in over 18,000 crore in the first two weeks after being net sellers for six consecutive months. The reversal was driven by a weakening US dollar and improving risk appetite globally as the US Federal Reserve signalled a pause in its tightening cycle.
Second, India's IT sector delivered better-than-expected Q3 FY26 earnings, with TCS, Infosys, and Wipro all beating street estimates on both revenue and margins. The IT index surged 4.2% in a single session. Third, domestic institutional investors, particularly mutual funds, continued their systematic buying through SIP flows, which remained above 25,000 crore per month.
Should You Invest at All-Time Highs?
Historical data from Indian markets shows that investing via SIP at all-time highs has consistently delivered positive returns over 5-year and 10-year periods. The Sensex has made approximately 180 all-time highs since 2014, and investors who started SIPs at each of those highs would have earned an average of 12.4% annualised returns over the subsequent 5 years.
That said, lump-sum investors should exercise caution. Deploying large sums at market peaks carries short-term volatility risk. A staggered investment approach through SIPs or systematic transfer plans (STPs) remains the prudent strategy. Avoid the temptation to chase momentum in mid-cap and small-cap segments where valuations have stretched beyond historical averages.
Sector Outlook
Banking and financial services remain the largest weight in the Sensex and continue to benefit from healthy credit growth of 14% year-on-year. The auto sector has also performed well on the back of strong rural demand. Defensive sectors like FMCG and pharma have underperformed relatively but may see renewed interest if global growth concerns resurface.
Source
BSE India, NSE Market Data