“Higher global markets are setting up a positive open for Indian markets today. Fed Chairperson Powell’s comments gave a boost to US markets with a rate cut in September and December being factored in, even though Powell did not allude to any imminent rate cut. US Treasury yields dropped as well. Positive Asian markets this morning are continuing the advance led by the US markets in Tuesday trading, said Ajay Bagga, Market and Banking expert.
Mumbai: Benchmark indices, Nifty and Sensex scaled to fresh record highs on Wednesday, with Sensex surpassing 80,000 for the first time on the strength of banking and FMCG stocks. It was 80,013.77, up 572.32 points or 0.72 per cent at the time of filing this report. Nifty also opened at 24,291.75, up 168 points or 0.70 per cent.
Bank Nifty opened in green territory with an increase of 704 points or 1.35 per cent at 52 872.30 whereas the Nifty Midcap opened at 56149.90, an up of 295.20 or 0.53 per cent increase.
Among the sectoral indices on the National Stock Exchange (NSE), Auto, Financial Services, FMCG, Media, Pharma, PSU Bank, Private Ban, Realty, Healthcare, Consumer Durables, Oil and Gas, And Nifty Midsamall Healthcare opened in the red.
On the other hand, only IT stocks traded in red in the initial opening hours. On NSE, the biggest gainers were HDFC Bank, Britannia, HDFC Life, Tata Consumer, and Kotak Bank, and among the Losers in the initial hours of the market were TCS, Sun Pharma, Ultra Cement, Tech Mahindra.
“Higher global markets are setting up a positive open for Indian markets today. Fed Chairperson Powell’s comments gave a boost to US markets with a rate cut in September and December being factored in, even though Powell did not allude to any imminent rate cut. US Treasury yields dropped as well. Positive Asian markets this morning are continuing the advance led by the US markets in Tuesday trading, said Ajay Bagga, Market and Banking expert.
“Overall looking like a positive day for Indian markets. IT stocks are rerating in anticipation of a bottom having been formed in sentiment towards the sector and in expectation of better management guidance this result season. Financials, especially NBFCs and PSU banks were a drag in yesterday’s trading, leadership mantle is moving to lead private sector banks now,” he said.
“The latest Fedspeak on US inflation is also positive news for equity markets globally. Responding to the inflation print of 2.6 per cent with zero month-on-month increase Fed chief Powell yesterday made a dovish remark that the US is on a disinflationary path.
The Fed’s next rate action is likely to be a rate cut. RBI also is likely to follow suit with a rate cut in the next policy meeting, said Dr V K Vijayakumar, Chief Investment Strategist, at Geojit Financial Services.
The Sensex’s journey from 75,000 to 80,000 points has been notably swift, covering this 5,000-point climb in less than three months.This significant milestone highlights the Indian market’s remarkable performance over the past few months, showcasing strong investor confidence and economic optimism. The rally in the market gained significant momentum following the Modi 3.0 oath ceremony, reflecting positive market sentiment post-election. Prime Minister Narendra Modi took his oath for the new term on June 9, and the Sensex responded promptly, hitting the 77,000 mark the very next day.
The upward trajectory began on April 9 when the Sensex first touched the 75,000 milestone. From there, the index continued to climb steadily, reaching 76,000 points on May 27. This rise of 1,000 points within a month set the stage for further gains, as investor confidence remained high amid favorable economic policies and market conditions. On June 10, less than a month after reaching 76,000, the Sensex hit another high, crossing the 77,000 mark. The momentum did not wane, and in just 15 days, on June 25, the index breached the 78,000 barrier. The market rally continued to gather pace, and within the next two days, the Sensex surged to 79,000 points, driven by sustained buying interest and positive economic indicators.
Market experts had initially considered the 80,000-point milestone a distant target, especially given the global economic uncertainties and market volatilities. “The BSE Sensex has taken 7 months, since Dec 2023 to put on its latest 10,000 points to break through to an 80,000 lifetime high level. This lifetime high will attract more funds to the markets. The valuations are not cheap and India remains one of the two most expensive markets in the world. However, the fundamentally sound macros, the demographic advantages and sound policy regime with focus on growth and import substitution makes todays expensive market tomorrows sound investment and the day after bargain” said Ajay Bagga, Banking and Market Expert.
The Indian stock market has consistently proven to be a favorite destination for both domestic and international investors. Factors such as strong corporate earnings, favorable government policies, and a resilient economic outlook have contributed to the sustained bull run. The rapid gains also highlight the significant role played by various sectors, including technology, finance, and energy, which have been driving the market’s upward momentum.
However, Nilesh Shah, MD, Kotak Mutual Fund cautioned the investors that they should remain vigilant and consider potential risks, including global economic uncertainties and market corrections. “Sensex milestones are a Journey and not a destination. Do remember that this journey is both forward as well as backward. Nasdaq (US index) went so backward that it took 17 years to come back to the previous peak. Invest in the market as per your risk appetite, have long-term horizon, significantly moderate your return expectations, and follow the dharma of asset allocation” said Nilesh Shah, MD, Kotak Mutual Fund.
The BSE Sensex’s surge to the 80,000 mark is a historic achievement, marking a period of robust market performance and investor confidence in India’s economic future.
The Nifty 50 index scaled a fresh high on Wednesday, indicating continuation of an upward trend. An intraday move over 24300 could spark a sharp upside to 24400. The broader outlook remains positive, with the index seeking to reach the 24500 level.
The immediate support exists at 24000, followed by 23500. Only a breach of 23500 could derail the positive bias. The trend remains upward until the upward rising trend line on the daily chart continues to support the bullish trend, said Avdhut Bagkar, Derivatives and Technical Analyst, StoxBox.
On Tuesday, domestic equity indices ended with minor losses due to profit booking at record highs reached during the session. The Sensex declined by 34.74 points to close at 79,441.45, while the Nifty 50 decreased by 18.10 points, or 0.07 per cent, settling at 24,123.85.
Despite this, the overall trend for Nifty remains positive, with further consolidation or minor dips seen as potential buying opportunities, following a bullish pattern of higher tops and bottoms.