NEW DELHI: Domestic equity market registered a gain for the fourth successive session on Wednesday, with two benchmark indices NSE Nifty50 and BSE Sensex clocking all-time highs. The NSE index hit a fresh lifetime high of 21,673, while the BSE index crossed the 72,000 level for the first time. The 30-share index had scaled the 70,000 mark for the first time on December 11 and the 71,000 mark on December 15.
At Wednesday’s close, Sensex was up 701.63 points or 0.98% at 72,038.43, and the Nifty was up 213.50 points or 1% at 21,654.80. Vinod Nair, head of research at Geojit Financial Services, said this upward trend was mainly supported by the Santa Claus rally in anticipation of early rate cuts by the US Fed and cooling global inflation. Additionally, the news of major shipping companies resuming operations through the Red Sea despite ongoing tensions further bolstered domestic sentiment.
The bullish momentum in domestic market is so strong that Sensex and Nifty50 have surged about 13-14% each since the beginning of November 2023. The ongoing rally picked up a pack after the victory of PM Narendra Modi-led Bharatiya Janata Party in three state elections. The market received another booster after the US Federal Reserve signalled three rate cuts in 2024. The developments coupled with favourable factors such as sharp growth in September quarter GDP numbers, robust GST revenue, a fall in retail inflation, and easing of bond yields have made India an attractive market, mainly for foreign institutional investors (FIIs).
“We expect the prevailing move to extend further and eyeing 22,150 levels (for Nifty). We feel alignment of the banking index and supportive global cues would continue to play a critical role in maintaining momentum, else the move could be gradual,” said Ajit Mishra, SVP - Technical Research, Religare Broking. Broader indices, too, advanced, with Nifty Midcap 100 and Nifty Smallcap 100 rising to 0.6%. Analysts have asked investors to remain cautious. “There is frenzy in the mid and small-cap segments where valuations are excessive. A correction in broader market is inevitable,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
HDFC Bank, Bharti Airtel, Infosys, Tata Motors, L&T and State Bank of India (SBI) were among the top gainers in the Sensex pack on Wednesday. Aditya Birla Group shares had an eventful day on the exchanges as shares of Hindalco Industries hit a fresh 52-week high of Rs 607.65 apiece on the NSE after the company announced acquiring a 26% stake in Seven Renewable Power Private Limited (SRPPL).
Strong momentum
Bullish momentum in domestic market is so strong that Sensex and Nifty50 have surged about 13-14% each since the beginning of November 2023