The main stock index of Iran broke through the key two million point mark for the first time ever on Sunday, the state media reported amid the warnings that the market is getting overheated.

The Tehran Stock Exchange's benchmark TEDPIX index did gain 46,844 points in the early trading, the announcement was made by the official IRNA news agency, up 2.4 percent.

Iran Stock Index Rise

Iran's national flag
Iran's national flag Reuters

The index closed at 1,961,649 on Saturday after surging by over 57,325 points, or 3.01 percent, on the day, according to the Tehran Stock Exchange (TSE) website. Iran's clerical rulers have been encouraging ordinary Iranians to invest in local stocks to boost the country's economy, which has been hard hit by the reimposition of U.S. sanctions over Tehran's nuclear program.

Analysts and some lawmakers, however, have warned that the move might raise the risk of a stock market bubble as the rising market is at odds with Iran's deteriorating economic fundamentals, which are also feeling the impact of the coronavirus outbreak. Iranian authorities have denied that there is a bubble in the country's stock market.

(With agency inputs)