Sensex Soars 930 Points to Reach Record High of 70,500, Nifty Settles at 21,183; IT and Realty Stocks Shine

BSE Sensex Surges 929.60 Points, Closes at 70,514.20; NSE Nifty50 Rallies 246.30 Points, Settles at 21,172.65.

SUMMARY:

Indian stock markets recorded significant gains on Thursday.

BSE Sensex concluded above 70,500, while Nifty surged by 246 points.

Broader markets closed on a positive note, although India VIX experienced a rise of over 2%.

It was a remarkable day for the domestic equity markets as both headline indices reached new record highs and closed above key psychological levels for the first time.

The positive indications of potential rate cuts by the US Federal Reserve in 2024 contributed to a positive sentiment globally, and this optimism was reflected on Dalal Street as well. Robust buying was observed across all major sectors, propelling the headline indices significantly higher.

During the trading day, BSE’s Sensex experienced a robust surge of 929.60 points, equivalent to 1.34%, ultimately settling at 70,514.20. Simultaneously, NSE’s Nifty50 witnessed a rally of 246.30 points, or 1.18%, concluding the day at 21,172.65.

The broader markets, represented by BSE midcap and smallcap indices, also performed well, each registering a gain of about 1%. The fear gauge, India VIX, saw an increase of more than 2%, reaching the 12.32-mark.

The decision by the US Federal Reserve to keep interest rates unchanged had a positive impact on the global equity market sentiment, including in India.

This led to benchmark indices reaching new record highs, driven by enthusiastic buying support, according to Prashanth Tapse, Senior VP (Research) at Mehta Equities.

Furthermore, the decline in crude oil prices and the influx of foreign investments into domestic equities have contributed to boosting investors’ sentiment.

Prashanth Tapse notes that with India consistently demonstrating robust growth figures and the anticipation of a rate cut in the middle of the next year, there is a likelihood that optimism in the equity markets could persist in the medium term.

In terms of sectors, notable gains were observed in the Nifty realty and IT indices, each surging approximately 4%. They emerged as the leading gainers for the day. Additionally, the Nifty oil & gas, private bank, and financial services indices each recorded gains of over 1%. On the other hand, the only laggards were the Nifty media, healthcare, and consumer durable indices, which settled in the red.

Within the Nifty50 index, notable performers included Infosys, Tech Mahindra, and LTI Mindtree, each surging by 4%. Other gainers included Wipro, HCL Tech, IndusInd Bank, and Bajaj Finance, all registering a gain of 3%. On the flip side, Power Grid and HDFC Life Insurance experienced declines of 2% each, while Nestle India, Cipla, and JSW Steel recorded losses of 1% each.

The market sustained its exuberance and achieved a new high, propelled by the dovish commentary from the Federal Reserve. The indication of at least three rate cuts in 2024, coupled with a significant decline in US bond yields, contributed to an improvement in investors’ confidence, as noted by Vinod Nair, Head of Research at Geojit Financial Services.

Vinod Nair, Head of Research at Geojit Financial Services, mentioned that the broad-based rally in the market, with notable outperformance from the Realty and IT sectors, was influenced by factors such as an upgrade in India’s GDP forecast, a decline in global oil prices, and the Reserve Bank of India’s decision to address inflation and bring it within the target level. These positive developments likely contributed to the overall market exuberance.

Vinod Nair, Head of Research at Geojit Financial Services, mentioned that the broad-based rally in the market, with notable outperformance from the Realty and IT sectors, was influenced by factors such as an upgrade in India’s GDP forecast, a decline in global oil prices, and the Reserve Bank of India’s decision to address inflation and bring it within the target level. These positive developments likely contributed to the overall market exuberance.

On Thursday, a total of 3,892 shares were traded on BSE. Out of these, 2,064 stocks concluded the session with gains, while 1,703 stocks saw declines. Additionally, 125 shares remained unchanged. Notably, during the trading day, 341 shares hit their upper circuit limits, indicating strong positive momentum, whereas only 206 shares tested the lower circuit levels, suggesting a more limited downside for the day.

In the broader markets, Onward Technologies witnessed a significant surge of about 20%, while Hudco gained 12%. Indian Railway Finance Corporation concluded 11% higher, and PTC India hit the upper circuit with a gain of 10%.

PTC India Financial Services recorded a gain of 9%, and Swan Energy closed the session with an 8% increase. These performances highlight notable movements and gains in various stocks beyond the benchmark indices.

Among the laggards, Jain Irrigation Systems witnessed a significant decline of 8%, while Inox Green Energy Services dropped by 7%. Additionally, 63Moons, PTC India, and Tourism Finance Corporation of India each concluded the session with a decline of 4%. These stocks experienced notable losses during the trading day.