Sensex and Nifty Hit New Record Highs

Indian equity benchmarks soared to new lifetime highs on Thursday, driven by gains across all sectors. The 30-share BSE Sensex surged 304 points, or 0.44%, to an all-time high of 67,771, while the NSE Nifty climbed 97 points, or 0.47%, to a fresh peak of 20,168. Broader market shares also performed well, with the Nifty Midcap 100 rising 0.91% and the small-cap index gaining 1.23%.

Global Market Influence

Globally, Asian equities advanced as concerns over interest rates eased. US consumer price data showed core inflation moderated to 4.3% in August from 4.7% in July, marking the smallest year-on-year increase in nearly two years. This development bolstered expectations of a pause in the Federal Reserve’s rate hike cycle later this month. However, overall retail inflation accelerated to 3.7% in August, the highest in 14 months, driven by rising gasoline prices.

Domestic Investor Activity

On the domestic front, foreign institutional investors (FIIs) sold shares worth Rs 1,632 crore on a net basis during the previous session, while domestic institutional investors (DIIs) purchased shares worth Rs 850 crore, according to exchange data.

Sectoral Performance and Market Outlook

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “Since financials account for 32% weightage in Nifty, strength in financials, particularly banks, can keep the index resilient. The valuations of banking stocks are still fair, and strength in these stocks can help the market remain resilient even though overall market valuations are rising beyond comfort levels.”

All 15 sector gauges compiled by the NSE were trading in the green. The Nifty IT, Nifty Metal, and Nifty PSU Bank sub-indexes outperformed, rising 1.05%, 1.42%, and 1.06%, respectively.

Top Gainers and Losers

In specific stocks, Hindalco was the top gainer in the Nifty pack, jumping 4.47% to trade at Rs 504.8. Other notable gainers included Tata Steel, UPL, Tech Mahindra, and JSW Steel, which gained up to 3.24%. Conversely, Tata Consumer Products, ITC, Bajaj Finance, Sun Pharma, and Asian Paints were among the top laggards.

The overall market breadth was positive, with 2,353 shares advancing and 539 declining on the BSE. On the 30-share BSE index, Infosys, Tata Steel, HDFC Bank, Tech Mahindra, M&M, HCL Tech, SBI, Tata Consultancy Services (TCS), and Maruti were among the top gainers.

Additionally, Bombay Dyeing, NBCC, DCW, Zensar Tech, Bombay Bumrah, Avanti Feeds, Balrampur Chini Mills, and Apar Industries surged up to 20%. On the downside, IOL Chemicals and Pharmaceuticals, Supreme Industries, BEML, Orient Cement, and West Coast Paper Mills slipped up to 2.56%.

Recent Market Performance

On Tuesday, the Sensex climbed 246 points, or 0.37%, to settle at 67,466.99, while the Nifty moved 77 points, or 0.38%, higher to settle at 20,070.

Nifty Outlook

Anand James, Chief Market Strategist at Geojit Financial Services, commented on the Nifty outlook: “The 19,944 region held for yet another day. Thus, despite the selling towards the close, the upside trajectory aiming for 20,230, or even 20,600, continues to be in play. The downside marker may be pushed higher to 20,033, with deeper support beyond 19,944 seen at 19,690.”