It’s a home run, Sensex touched the 83,000 mark for the first time, making a record high of 83,116.19. Similarly, Nifty 50 broke its previous record high to touch a fresh all-time high of 25,433.35.
The Indian equity indices ended on a positive note on Thursday buoyed by global sentiment. First, in the morning, Asian indices helped markets to open in the green supported by a rally in tech stocks in US markets overnight.
Further, the Indian market spiked during the last trading hour as investors poured money into bluechips.
According to Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Broke, the markets gained strength (in the last hour) on news of China cutting rates by 50 bps on $5 trillion mortgages as soon as this month to boost consumption. This came out a bit ahead of a European Central Bank (ECB) policy meeting later in the day. “Providing a much-needed sentimental boost to the markets,” Solanki put it.
Motilal Oswal Wealth Management’s Head of Research, Siddhartha Khemka, said that this positive up-move was supported by heightened expectations of a 25 bps rate cut by the US Fed after the inflation data came in on expected lines.
The Nifty 50 clocked a handsome gain of 470 points or 1.89% to settle the day’s trading at 25,388.90. The Sensex advanced 1,440 points or 1.77% higher at 82,963. Reliance Industries, Bharti Airtel, HDFC Bank, Infosys, and L&T were the five major contributors to the index. Market breadth is also in the favour of bulls as 1,727 stocks advanced and 1,003 stocks declined out of 2,819 stocks being traded on NSE.
Oil Secretary Pankaj Jain’s comments about lowering diesel/petrol prices after a fall in global crude oil prices below $70 on demand concern and supply glut have likely helped markets close on a higher note, said Gaurav Garg, Lemonn Markets Desk.
Going ahead, in tomorrow’s session, market participants will digest domestic inflation and industrial output data due later today where inflation is expected to remain below the 4% RBI threshold for the second consecutive month, said Garg.
Sectoral Index
The Bank Nifty added 762.40 points or 1.49% to close the day at 51,772.40. The Nifty Midcap 100 rose 702.25 points or 1.19% to end the session at 59,640.30. In the broader markets, smallcap and midcap stocks closed in the green.
Bank Nifty
Talking about Bank Nifty’s technical side, “Bank Nifty also broke out of consolidation on the upside and has started it upmove towards 52000 – 52500. Prices are sustained above key daily moving averages, which is a sign of strength. So, there is a case for the momentum to continue over the next few trading sessions,” said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.