The NSE Nifty 50 index reached a new peak, marking the third consecutive session of record highs, while the S&P BSE Sensex also climbed to 73,221.01, up by 0.23 per cent, as of 10:20 a.m. IST.
The Nifty 50 index surged to an all-time high of 22,249.40, rising by 0.24 per cent, maintaining its upward trajectory. This remarkable surge was largely driven by gains in metal stocks.
Small and mid-cap stocks, which are more focused on domestic markets, also experienced an uptick of 0.3 per cent each. However, Asian markets faced a downturn amid reduced expectations of early US interest rate cuts, affecting overall risk appetite.
The Nifty’s sustained momentum, rising for the seventh consecutive session, has been credited to consistent buying by domestic institutional investors. VK Vijayakumar, Geojit Financial Services’ chief investment strategist, highlighted this trend to Reuters.
In the month of February alone, domestic investors have been net buyers in 12 out of 14 sessions, investing in stocks worth 193.37 billion rupees ($2.3 billion).
Metal stocks witnessed substantial gains, with an overall increase of 1.9 per cent, led by a 3 per cent surge in Hindalco, an aluminium maker, following its U.S. subsidiary Novelis’ filing for a U.S. initial public offering. Global metal prices also saw an uptick, driven by expectations of a demand rebound in China, the world’s top producer and consumer. China’s efforts to bolster its property sector and a weaker US dollar further supported this trend.
Hindalco, Tata Steel, and JSW Steel led the Nifty 50 gainers, with gains ranging between 2 per cent and 3 per cent. Public sector banks also saw a rise of 1.6 per cent, while private banks added 0.5 per cent to the positive momentum.
Vijayakumar expressed optimism regarding the sustainability of the rally, particularly noting the positive sign of fairly valued large banks contributing to the upward trend.
In pre-market trading, shares of Zee Entertainment Enterprises Limited (ZEEL) witnessed a decline of 10 per cent. This drop followed a media report revealing an accounting discrepancy of over 20 billion rupees ($241.3 million) in the company’s accounts, as identified by the Securities and Exchange Board of India (Sebi).
On the other hand, shares of One 97 Communications Limited, the parent company of digital payments platform Paytm, surged by 5 per cent, reaching the upper circuit. This marked the fourth consecutive day of a 5 per cent increase in Paytm shares, trading at Rs 395.05 on the Bombay Stock Exchange (BSE) at 9:20 a.m.
