India’s benchmark indices surged to record highs on Thursday, driven by board-based buying across sectors and strong investor confidence.
The Sensex soared 1,439.55 points to close at an all-time high of 82,962.71, while the Nifty jumped 395.40 points to end the session at 25,313.85. Of the Nifty50 companies, 49 posted gains, with only one stock finishing in the red.
Key performers included Hindalco Industries, Bharti Airtel, NTPC, Shriram Finance, and Grasim. Hindalco was the top performer, rising 4.15%, while Bharti Airtel and NTPC also contributed significantly to the indices’ upward momentum. Nestle India was the only notable underperformer in an otherwise bullish market.
In currency markets, the Indian rupee traded with a slight negative bias due to the strength of the US dollar and a rebound in global crude oil prices. While these factors capped the rupee’s gains, analysts believe global risk appetite and potential intervention by the Reserve Bank of India (RBI) could provide support in the future.
Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, said, “Indian markets opened in green following a positive session in Asian markets, which were buoyed by a tech-fuelled rally on Wall Street overnight. As the day progressed, the markets gained further strength as traders preferred to invest in large-cap stocks.”
The rally also benefited from the news of China’s potential rate cut of 50 basis points on $5 trillion worth of mortgages, giving markets a sentimental boost ahead of the European Central Bank (ECB) policy meeting later in the day, Solanki added.
Shriram Subramanian, Founder and Managing Director of InGovern Research Services, said, “On the back of China’s rate cut to revive its economy, there was massive short covering today. Even large-cap stocks participated in the rally. However, investors should exercise caution, especially with stocks where valuations are stretched or financials are questionable.”
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., advised a careful approach amid the market highs. “Participants should focus on sectors and themes showing consistent trends, and prioritize large-cap and major mid-cap stocks for fresh buying opportunities. Strong buying in heavyweight stocks across sectors propelled the indices upward in the final hours of trading.
Despite global uncertainties, investor optimism remains strong. However, experts recommend a strategic approach, emphasizing the importance of focusing on strong fundamentals and avoiding overvalued stocks.
Varun Aggarwal, Founder and Managing Director of Profit Idea, said, “The market has digested the Fed’s 25 basis point rate cut and maintained a positive outlook. With liquidity expected to flow in, the market is likely to remain bullish in the near future.”
(ANI)
