The stock market in Mumbai reached a historic milestone on Thursday, as both the Sensex and Nifty closed at record highs. This surge was driven by widespread buying across various sectors, showcasing strong investor confidence and robust market sentiment. The Sensex saw a significant increase of 1,439.55 points, closing at 82,962.71, while the Nifty surged by 395.40 points, ending at 25,313.85. Out of the Nifty50 companies listed, 49 witnessed gains, with only one stock finishing in the red. Top performers such as Hindalco Industries, Bharti Airtel, NTPC, Shriram Finance, and Grasim led the rally with strong gains, while Nestle India was the notable decliner.
In the currency markets, the Indian rupee experienced a slight negative bias due to the strength of the US dollar and an increase in global crude oil prices. Despite these factors, global risk appetite and potential intervention by the Reserve Bank of India (RBI) may lend support to the rupee in the future. The movement of the rupee will be closely monitored as international dynamics evolve. Narendra Solanki from Anand Rathi Shares and Stock Brokers mentioned that positive Asian markets and a tech-fuelled rally on Wall Street contributed to the market’s performance. Additionally, news of China cutting rates by 50 bps on $5 trillion mortgages provided a boost to market sentiment.
Shriram Subramanian from InGovern Research Services highlighted the impact of short covering in the market rally. He mentioned that on the back of China’s rate cut to stimulate its economy, there was significant short covering in the final hour of trading. He cautioned investors to be wary of companies with stretched valuations or questionable financials. Ajit Mishra from Religare Broking Ltd. shared a similar outlook, advising caution while navigating the market wave. He recommended focusing on sectors and themes displaying consistent trends and prioritizing large-cap and major midcap stocks for fresh buying opportunities.
With the stock market reaching historic highs, investor optimism remains strong despite global uncertainties. Experts suggest adopting a strategic approach, emphasizing strong fundamentals and avoiding stocks with overextended valuations. Varun Aggarwal from Profit Idea mentioned that the market is elevated following the Fed rate cut and positive outlook, expecting more bullish momentum in the future. Overall, the market’s performance reflects a positive investor outlook, supported by broad-based buying across various sectors.
