Dalal Street commenced trading on a positive note on Thursday, marking significant milestones as both the Sensex and Nifty50 reached new all-time highs. Optimism surrounding potential interest rate cuts in the US and India fueled the market’s positive sentiment.
The S&P BSE Sensex surged over 400 points, surpassing 86,000, while the Nifty50 achieved a new peak above 26,300. Notably, this marks the first instance in 14 months that both indices have achieved record levels.
In early trading, key gainers on the Sensex included Bajaj Finance, Axis Bank, Larsen & Toubro, Bajaj Finserv, and Asian Paints, with gains ranging between 0.8% and 1.5%. Furthermore, broader market indices for midcap and small-cap stocks also witnessed upward movements.
Global markets provided additional positive cues as US markets continued their upward trend following dovish statements from the Federal Reserve and decreasing bond yields. The Dow Jones rose by 314 points to close at 47,427.12, while the S&P 500 climbed by 46 points to 6,812.61.
Domestically, supportive news flow included the Union Cabinet’s approval of a scheme worth Rs 7,280 crore to enhance the production of rare earth permanent magnets. Additionally, Mahindra & Mahindra introduced its BE 6 Formula E Edition electric SUV with prices starting at Rs 23.69 lakh.
Asian Paints announced a strategic investment of Rs 340 crore to establish its second plant in the UAE. Collaborations were also unveiled, with Wipro and IISc partnering for research in agentic AI and quantum computing. Moreover, Paytm Payments Services received regulatory approval from the RBI to function as a payment aggregator, while Havells India disclosed plans to acquire a 26% stake in a solar power project under Kundan Solar.
Market derivatives indicated strength, with foreign institutional investors increasing long futures contracts and reducing short positions. Notably, expectations of consolidation around the 26,000 and 26,300 levels were reflected in the highest put and call open interests, respectively.
Top stocks to monitor, as highlighted by analysts at the FundsIndia Equity Research Desk, included Sammaan Capital, SAIL, Uno Minda, Kaynes, BHEL, RVNL, KEI Industries, L&T Finance, Tata Technologies, and IIFL on the bullish side. Conversely, Nykaa, Adani Enterprises, Bharti Airtel, Eicher Motors, Asian Paints, LIC, PI Industries, and SBI Life were identified as weaker stocks.
As the market reaches new heights, investors are advised to consider their entry points carefully. Dr. Ravi Singh, Chief Research Officer at Master Capital Services Ltd, emphasized the significance of monitoring market behavior amid profit booking phases. While the market remains robust, periodic pauses and intraday volatility are expected as investors strategize to protect gains.
Factors such as global economic trends, corporate earnings, and policy decisions will continue to influence market sentiment. It is crucial for investors to remain diligent, particularly amidst evolving market conditions and potential opportunities for profit accumulation.
Investors are urged to exercise caution, remain selective in their investments, and seek guidance from financial professionals before making significant financial decisions.