Sensex, Nifty Hit Record Highs Inspired by Maruti Suzuki Gains

Driven by an almost 7% increase in Maruti Suzuki India (MSIL), the nation’s biggest passenger vehicle manufacturer, the benchmark indexes Sensex and Nifty hit new record highs on Tuesday. Rising to an intraday high of 80,397 before ending at 80,352, the Sensex gained 391 points or 0.5%. Comparatively, the Nifty 50 index came in at 24,433, up by 113 points or 0.5%. On intraday and closing bases, both indices set fresh highs.

The rise in MSIL shares coincided with the declaration of a total free of registration tax on powerful hybrid vehicles by Uttar Pradesh (UP) government. The UP government levies an 8% road tax on vehicles less than ₹10 lakh and a 10% levy on those costing more than ₹10 lakh right now. MSIL, leading market player in the strong hybrid category, showed notable increase. Notwithstanding not having products in the strong hybrid category, shares of other automakers, like Tata Motors and Mahindra & Mahindra (M&M), also increased. Tata Motors rose 1.2%; M&M shares climbed by 2.7%. The sectoral index that performed the best—the BSE Auto index—rose by 2.2%.

After the results of the general election, Indian stocks have been on an increasing path supported by prospects of policy consistency, earnings stability, and consistent macroeconomic figures. The Sensex has climbed by 14.4% from its low on June 4; the Nifty has climbed by 15%. In 13 trading sessions this period, the Sensex has reached fresh highs.

Head of retail research at Motilal Oswal Financial Services Siddhartha Khemka said, “Generally, we expect markets to trade with a positive tilt and draw cues from impending inflation data, Q1FY25 results, and the budget. Over the next few days, the pharma industry is probably going to remain focused on a reasonable value and expectation of good earning growth in Q1.”

On the BSE, 1,960 stocks advanced and 1,973 fell, hence creating a neutral total market breadth. All BSE-listed firms’ aggregate market capitalization reaches a fresh record of ₹451 trillion or $5.4 trillion.

Looking ahead, market momentum will still be shaped by both local and international elements. Investors are attentively observing company performance as well as Federal Reserve Chair Jerome Powell’s Congressional speech for understanding of the US interest rate future. Thanks to monsoon and kharif sowing, consuming sectors including FMCG and auto are now driving the increases. The first-quarter earnings figures will be much awaited by investors, who will then help to shape the market. Head of retail research at Geojit Financial Services Vinod Nair pointed out, “The IT sector is expected to start the season favorably with optimistic revenue growth forecasts. Moreover, ongoing positive FII inflow helps to explain the general good attitude.”