MUMBAI: Advancing for the 13th consecutive session, probably its longest run on record, the local equity market benchmark index - NSE Nifty50 - touched fresh high level again on Monday. The other benchmark - BSE Sensex- rose for the 10th consecutive session on Monday.
The Nifty ended 42.80 points or 0.17 per cent higher at 25,278.70, and the Sensex closed 194.07 points or 0.24 per cent, up at 82,559.84. During the intraday trade of Monday, the Nifty hit a new record high of 25,333.60 and the Sensex touched a fresh high of 82,725.28.
The ongoing rally in the market is attributed to positive global cues amidst the high chances of an early interest rate cut by the Federal Reserve. Further, an improvement in macroeconomic indicators and buying in select index heavyweights is pushing the benchmarks to new highs.
“The positive trend is broadly sustaining as the domestic economic growth is still healthy and PMI numbers are much above the long-term average indicating an uptick in earnings in the coming quarters. But volatility is increasing as Q1 GDP growth has moderated and a similar trend is witnessed in corporate earnings," said Vinod Nair, Head of Research, Geojit Financial Services.
The broader indices underperformed as the BSE MidCap ended flat and the SmallCap fell 0.5 per cent. Except for bank, FMCG and IT, all other sectoral indices closed in the red with capital goods, metal, healthcare, telecom and media down 0.4-1.6 per cent. Among stocks, Bajaj Finserv, Bajaj Finance, HCL Technologies, Bajaj Auto and Hero MotoCorp were among the top gainers in the Nifty 50 pack. Grasim Industries, Kotak Mahindra Bank, Adani Enterprises, Coal India and Nestle India were among the major laggards.
Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher, said that compared to major global indices like the S&P 500 and NASDAQ, which have shown gains, the frontline Indian indices such as the Nifty 50 and BSE Sensex have slightly underperformed in recent times.
“Looking ahead, while short-term volatility may continue, the medium to long-term outlook for Indian equities remains positive. However, global economic challenges could still pose risks, especially if foreign investor sentiment weakens further,” added Kasat.