Markets Reach New Heights for the Sixth Consecutive Session – Business
Punjab News
The Sensex jumped more than 600 points, with Maruti, M&M, Reliance, and Tata Motors emerging as the top gainers.
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On Thursday, the Indian stock market reached significant milestones, marking a historic day for investors and traders alike. Both the BSE Sensex and Nifty 50 indices soared to new all-time highs. This upward movement reflects strong investor sentiment and confidence in the market, driven by various economic factors and upbeat corporate earnings reports. The achievements of these critical indices signify robust market activity and a favorable economic environment that has encouraged institutional and retail investors to participate actively in trading.
The Sensex experienced a remarkable surge, climbing by 666.25 points, which translates to an increase of 0.78 percent, ultimately closing at an impressive 85,836.12. During intraday trading, the BSE Sensex index reached a remarkable new peak of 85,930.43, within just 70 points of the significant psychological barrier of 86,000. This impressive performance showcases the index’s resilience and the strong buying interest among market participants. Meanwhile, the Nifty 50 also joined in the positive momentum, achieving its all-time high of 26,250.90 before concluding the trading session with a gain of 211.90 points, or 0.81 percent, to close at 26,216.05. This dual achievement by both indices highlights the overall strength and bullish sentiment prevalent in the Indian stock market on that day.
When inquired about the factors contributing to the upward trend, Vishnu Kant Upadhyay, AVP (Research and Advisory) at Master Capital Services Ltd, stated, “The rally in the indices can be attributed to increased foreign inflows, following the US Federal Reserve’s decision to cut interest rates by 50 basis points last week. Growing global optimism further boosted investor confidence, as China, the world’s second-largest economy, pledged to reduce its Reserve Requirement Ratio (RRR) by 50 basis points amid ongoing economic challenges. A rebound in index heavyweights also played a crucial role in propelling the indices to record highs.” Maruti Suzuki, M&M, Reliance Industries, and Tata Motors emerged as the top contributors to the index’s movement. In terms of sector performance, the auto, metals, and public sector bank sectors recorded the most significant gains, whereas the Nifty Consumer Durables index ended the day in negative territory.
The Bank Nifty commenced the day with a strong positive momentum, reflecting heightened enthusiasm among investors. This robust opening was characterized by significant buying interest as traders capitalized on favorable market conditions and optimistic sentiment regarding the banking sector’s performance. As a result of this enthusiastic trading, the index soared to an impressive new all-time high of 54,467.35. This achievement underscored investors’ confidence in the banking industry and highlighted the sector’s potential for growth.
However, after reaching this peak, the Bank Nifty experienced some profit-taking, a common occurrence in financial markets when investors look to lock in gains after a substantial rise. Despite this brief pullback, the Bank Nifty index managed to maintain its positive trajectory and ultimately closed the day on a solid note at 54,375. This closing figure reflects the index’s overall resilience as it hovers near its record levels, signaling sustained investor interest and confidence in the banking sector’s prospects.
Vikram Kasat, Head, Advisory, PL Capital (Prabhudas Lilladher), said, “The next big triggers for the market are the festive season, which spurs consumer spending; Q2 FY25 results; and whether the RBI MPC (Monetary Policy Committee) decides to cut rates following Federal Reserve’s 50 bps rate cut.” Meanwhile, the volatility index, INDIA VIX, cooled by 7.12 percent, settling at 11.84, indicating a decrease in market volatility.
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