Benchmark stock market indexes started the day on a positive note on Thursday, maintaining their upward trend. The Nifty reached a new high after 14 months, while the Sensex surpassed 86,000 to hit its previous all-time high from September last year.
The S&P BSE Sensex rose by 224.80 points to reach 85,836.74, and the NSE Nifty50 gained 60.85 points to 26,266.15 by 9:25 am.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, mentioned that the market had shifted to a bullish phase following a 320-point Nifty rally the day before. He highlighted the favorable technical setup of the market, along with significant Foreign Institutional Investor (FII) short positions, indicating a potential rally supported by expected earnings growth in the third and fourth quarters of FY26.
In the early trading session on Dalal Street, most Sensex stocks were in positive territory. Bajaj Finance led the gainers with a 1.03% increase, followed by Axis Bank at 0.83%. Other notable gainers included Larsen & Toubro, ICICI Bank, and Asian Paints.
Conversely, at the start of trading, Eternal was the biggest loser, dropping by 0.70%. Titan, Maruti, Kotak Mahindra Bank, and Adani Ports also registered declines.
The Nifty Midcap100 index climbed by 0.14%, while the Nifty Smallcap100 rose by 0.07%. The India VIX, a volatility indicator, increased by 0.96%.
Sector-wise, Nifty Auto, Nifty Financial Services 25/50, Nifty FMCG, Nifty IT, Nifty Media, Nifty Metal, Nifty Pharma, Nifty PSU Bank, Nifty Private Bank, and Nifty Healthcare Index all witnessed gains. However, Nifty Realty, Nifty Consumer Durables, and Nifty Oil and Gas were in the negative territory.
Vijayakumar highlighted the potential for a market rally due to the consumption surge observed in October, translating into robust earnings growth. He cautioned that while the market may rally, sharp and sustained uptrends may not be sustainable given current valuations. He pointed out that fundamentally, Bank Nifty was strong enough to support a rally to a new record high.
Moreover, expectations of a Federal Reserve rate cut and a possible peace agreement between Russia and Ukraine have boosted global equity market sentiments.
(Note: The opinions expressed in this article are solely those of the experts mentioned and do not represent the views of the India Today Group. It is recommended to seek advice from a qualified broker or financial advisor before making investment decisions.)
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