India’s benchmark indices hit a record high on June 28, with the Sensex breaching the 64,000 mark for the first time and the Nifty50 index topping the 19,000 level in intraday trade, reports Moneycontrol.

Experts say a combination of domestic and global factors have contributed to the market’s gains this week. Strong institutional flows, healthy macros, and robust earnings growth at India Inc drove the domestic indices toward new highs, says Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services.

Market sentiments also improved when the Reserve Bank of India kept the repo rate unchanged for the second consecutive time earlier this month, the report says.

Foreign portfolio investors (FPIs) played a part in rallying the market as well. FPIs pumped ?12,350 crore into domestic shares on Wednesday alone, and more than $10 billion into Indian equities in the June quarter, the biggest inflow since December 2020, the report adds.

But can the market sustain this high? As long as earnings growth and persistent investment flows are maintained, the markets will continue to scale new highs, says Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.