Sensex crossed 83,000 for the first time, Nifty above 25400
Mumbai (Maharashtra) [India], September 12 (ANI): The stock market hit a record-breaking milestone on Thursday, with both Sensex and Nifty closing at record highs. This surge was driven by broad-based buying across sectors, reflecting strong investor confidence and robust market sentiment.
The Sensex skyrocketed by 1,439.55 points to close at 82,962.71, while the Nifty surged by 395.40 points, closing at 25,313.85.
Out of the Nifty50 companies listed, 49 saw gains, with only one stock ending the session in the red.
Leading the rally were top performers such as Hindalco Industries, Bharti Airtel, NTPC, Shriram Finance, and Grasim, all of which posted strong gains.
Hindalco led the charge with a rise of up to 4.15 per cent, while Bharti Airtel and NTPC also delivered stellar performances, contributing significantly to the indices’ gains. On the flip side, Nestle India was the only notable decliner, underperforming amid the broader market rally.
In the currency markets, the Indian rupee traded with a slight negative bias, primarily due to the strength of the US dollar and a rebound in global crude oil prices.
While these factors capped the rupee’s gains, global risk appetite and potential intervention by the Reserve Bank of India (RBI) may provide support going forward. The rupee’s movement will continue to be closely watched as international dynamics evolve.
Narendra Solanki, Head Fundamental Research – Investment Services, Anand Rathi Shares and Stock Brokers, said, “Indian markets opened in green on back of positive Asian markets buoyed by a tech-fuelled rally on Wall Street overnight. During the afternoon session markets further gained in strength and traded sharply higher as traders preferred to buy large cap stocks.”He added, “The markets further gained strength on news of China cutting rates by 50 bps on $5 trillion mortgages as soon as this month to boost consumption came out ahead of a European Central Bank (ECB) policy meeting later in the day; providing much needed sentimental boost to the markets.”Commenting on the rally, Shriram Subramanian, Founder and Managing Director of InGovern Research Services, highlighted the impact of short covering.
He said, “”On the back of a rate cut in China to revive its economy, there was massive short covering in the last hour of trading today. Even large cap stocks participated in the rally. Investors must be careful of companies where share prices are with stretched valuations or where financials and business prospects are suspect.”Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., shared a similar outlook, advising caution while riding the market wave.
He said, “Participants should focus on sectors and themes displaying consistent trends and prioritise large-cap and major midcap stocks for fresh buying opportunities. While the session remained subdued for the most part, strong buying in heavyweight stocks across sectors propelled the index sharply upward in the final hours.”With the stock market touching historic highs, investor optimism continues to dominate despite global uncertainties. However, experts recommend a strategic approach, encouraging a focus on strong fundamentals and avoiding stocks with overextended valuations.
Varun Aggarwal, founder and managing director, Profit Idea, said, “The market is elevated as it digested the Fed rate cut of 25 basis points and positive outlook. Market will see liquidity coming in and it will be more bullish in the coming times.” (ANI)
