Indian stock markets soared to new heights today, with the Nifty and Sensex both reaching record levels.
Record Opening
The Nifty opened at 25,030.95, gaining 92.15 points or 0.37% from the previous close. The BSE Sensex also surged, starting at 81,949.68 points and quickly rising to 82,082, marking a gain of 208.34 points or 0.25%.
Factors Driving the Surge
Experts attribute this market buoyancy to favorable global trends and signals of a potential rate cut by Federal Reserve Chair Jerome Powell. “The Fed chief signaling a possible rate cut in September is positive for global equity markets. More importantly, his comments that the US economy is normalizing are a shot in the arm for bulls. The dip in the 10-year US bond yield to 4.05% is sharp and may halt or even reverse the FII selling in the cash market in recent days,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Top Performers and Sectoral Gains
In the Nifty 50, top gainers included Maruti, JSW Steel, Hindalco, Coal India, and Tata Motors. On the flip side, Mahindra & Mahindra, BPCL, Infosys, Ultratech Cement, and Sun Pharma were among the top losers. Broad market indices on the NSE sustained the rally, with all sectoral indices opening on a positive note.
Market Rally
Over the last six months, the Nifty 50 has surged more than 15%, while the BSE Sensex has gained over 14%. The markets have been rallying since the central government’s budget announcement on July 23. “If both FIIs and DIIs turn buyers, the market can spurt today, but sustaining the rally would be difficult since valuations are getting stretched,” added Vijayakumar.
Global Market Influence
Global markets showed mixed results, with Asian markets largely tracking Wall Street’s gains. The Dow Jones and S&P 500 rose 0.24% and 1.58%, respectively, while the Nasdaq surged 2.64%. The US dollar and Treasury yields fell post-Fed meeting. Brent crude prices rose by 0.8% to USD 81.51 per barrel, continuing gains from the previous session.
Currency Market Impact
The rupee opened 1 paisa higher at 83.67 against the US dollar after the Federal Reserve held rates but hinted at a potential rate cut in September. Despite the US dollar’s marginal decline in overseas markets, Brent crude oil prices rose, limiting gains for the domestic currency. At the interbank currency exchange, the rupee moved in a tight range of 83.67-83.69.
Today’s record highs in the Nifty and Sensex reflect a robust response to global cues and domestic policy signals. However, experts caution about stretched valuations and the sustainability of this rally, highlighting the importance of cautious optimism as markets navigate these historic levels.
(With inputs from agencies)
