Sensex and Nifty Hit Record Highs Amid Strong Market Trends

In early trade on Thursday, the benchmark equity indexes Sensex and Nifty reached their all-time highs, propelled by favorable global market trends, solid inflows from Foreign Institutional Investors (FIIs), and strong purchasing in blue-chip firms.

Early trade saw the 30-share BSE Sensex jump 388.84 points to a record high of 80,375.64. In a similar vein, the Nifty increased by 114.45 points, reaching 24,400.95, a record high. Tata Motors, ICICI Bank, Mahindra & Mahindra, Infosys, HCL Technologies, and Tata Consultancy Services led the advances among Sensex constituents. On the other hand, the laggards were Bharti Airtel, Adani Ports and Special Economic Zone, HDFC Bank, and IndusInd Bank.

Exchange data shows that FIIs bought stocks worth Rs 5,483.63 crore on Wednesday. The primary cause of this significant purchasing was the large-scale delivery-based purchases of banking stocks, particularly HDFC Bank. Chief Investment Strategist at Geojit Financial Services V K Vijayakumar pointed out that the market may be resilient for a few days if this pattern holds. Additionally, he noted that FIIs had switched from short to long positions, indicating a positive shift in market sentiment.

The US 10-year bond yield fell to 4.35%, while Vijayakumar pointed to the dollar index’s slide to 105.29 as reasons for encouraging fund inflows. He continued by saying that starting next week, the market would react to the Q1 figures that were anticipated.

Shanghai and Hong Kong displayed a fall on Thursday, while Tokyo and Seoul exhibited favorable trading. Due to the Independence Day holiday, Wednesday’s trading session was abbreviated, but US markets still ended higher. Benchmark Brent crude for global oil prices decreased by 0.60%, closing at USD 86.82 a barrel.

The Sensex had surged by 632.85 points, or 0.79%, to an intraday high of 80,074.30 the day before, marking the first time the index has reached the milestone of 80,000 during intraday trading. At 79,986.80, the index closed slightly below 80,000, up 545.35 points, or 0.69%, from the previous level.

The impressive increase in the indices is a reflection of investors’ optimism and confidence, which has been bolstered by strong economic data and ongoing foreign investment. The optimistic trend and the market’s resiliency point to a solid future growth base underpinned by strengthening global market conditions and pro-business economic measures.