Indian stock market indices Sensex and Nifty approached fresh lifetime highs on the first trading day of the week, driven by a rally in the US markets and fresh foreign portfolio investments.
By the close of Monday’s trade, the Nifty 50 on the National Stock Exchange (NSE) had risen by 187.45 points, ending at 25,010.60. The BSE Sensex increased by 611.90 points, reaching 81,698.11.
BSE-listed companies added over Rs 2 lakh crore to their market capitalization on Monday, with the total market cap hitting a record high of Rs 462.40 lakh crore (USD 5.51 trillion).
According to market experts, investor sentiment was buoyed by signs of a potential shift in US monetary policy, which led to a 1.5 percent gain in the Nifty IT Index.
Top gainers on the NSE included Hindalco Industries, NTPC, HCL Tech, Bajaj Finserv, and ONGC, while stocks such as Apollo Hospitals, Hero MotoCorp, Adani Ports and SEZ, Maruti Suzuki India, and Grasim lagged.
“Due to heavy liquidity in the Indian market, Domestic Institutional Investors (DIIs) and mutual fund houses have been treating every dip as a buying opportunity, driving FOMO buying activities and adding to overbought conditions in mid and small-cap categories,” said VLA Ambala, Co-founder of Stock Market Today.
“US FED has signaled a rate cut in September, reflected in declining US treasury yields and the dollar index, leading to a rally in global markets despite uncertainty over the size of cuts. Indian markets hit new highs due to a positive shift in FIIs stance and strong DIIs inflows,” said Vinod Nair, Head of Research at Geojit Financial Services.
During the trading session, broader indices advanced, with the Nifty Midcap 100 gaining 0.64 percent. Sector-wise, IT, Metal, Realty, and Oil Marketing Companies (OMCs) posted gains of up to 2.16 percent, with the Nifty Metal Index surging over 2 percent, followed by Nifty Realty (1.7 percent) and Nifty IT (1.4 percent).
Later this week, the market will focus on the first quarter GDP data scheduled for release on Friday. The Reserve Bank of India, in its latest monetary policy meeting, projected GDP growth for 2024-25 at 7.2 percent, with Q1 growth expected at 7.1 percent, Q2 at 7.2 percent, Q3 at 7.3 percent, and Q4 at 7.2 percent. India’s GDP grew impressively by 8.2 percent during the financial year 2023-24, maintaining its status as the fastest-growing major economy.
(With ANI Inputs)
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