The Indian stock market achieved another milestone on Tuesday as the benchmark BSE Sensex hit the 75,000 mark for the first time. Both the frontline indices traded at record-high levels in the opening trade on April 9 with the Nifty 50 surging above the 22,700 level.
The 30-share index Sensex opened 381.78 points, or 0.51%, higher at 75,124.28, while the NSE’s Nifty 50 surged 98.8 points, or 0.44%, to open at 22,765.10 on Tuesday. The Bank Nifty index also opened at a record high level of 48,810.80, up 229.10 points, or 0.47%.
Broader markets also supported the rally as the Nifty Midcap 100 and the Nifty Smallcap 100 indices gained over 0.3% each. Strong buying was seen across the sectors with Nifty Realty, Nifty Auto, Nifty IT and Nifty PSU Bank rising the most.
Among stocks, Infosys, Tata Motors, Wipro, TCS, Tech Mahindra and ICICI Bank were the top gains in the Sensex, while Reliance Industries, JSW Steel, Titan Company and Larsen & Toubro were the top losers.
Strong domestic macroeconomic fundamentals and positive global market cues also pushed the Indian stock market higher.
“The main catalyst behind the current uptrend is the hope of stronger than expected Q4 corporate earnings which is fuelling the market momentum over the past one week. The uptick in equity markets is seen despite a strong momentum in gold, crude and metals, as more than a Fed rate cut expectations going ahead investors are pinning hopes on strong Q4 earnings,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
He also assumes that domestic growth in H1FY2025 is likely to remain strong on the back of an acceleration in consumption demand amid election-related spending.
“Hence, the markets are expected to perform well, with high focus on large-caps which are offering better safety margins in earnings as well as valuations,” Tapse added.
Meanwhile, on the global front, Asian markets traded higher, while the US stock market ended flat overnight in a choppy session.
Investors now await the US Federal Reserve’s monetary policy meeting minutes and key US inflation data for further cues on the timing and depth of interest rate cuts.
“The pattern of ‘higher highs and higher lows’ is a distinct bullish signal and this has been the standout pattern in the Indian market this year. Consequently, the buy-on-dips strategy has consistently worked for investors. The new records set by the market yesterday confirm the bullish market undertone. A healthy and desirable trend in the market movement yesterday was the outperformance of the largecaps. This trend is likely to continue,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He believes that in this richly valued market, there is valuation comfort in largecap banking stocks.
“More importantly, Q4 results of the banking majors are likely to be very good. Sectors like capital goods, autos, cement and hospitality are likely to remain resilient,” Vijayakumar added.
Technicals
On the technical front, the Nifty 50 index is showing strength around the 22,700 mark, while Bank Nifty is expected to maintain its position around 48,650.
“Throughout the day, we anticipate the Nifty to sustain its upward momentum. If there’s a correction towards the 22,550 level in Nifty spot, it could present an opportunity for fresh long positions. Notably, the 22,800 Call strike in Nifty has significant Open Interest (OI) of approximately 48 lakhs shares, while the 22,500 Put strike holds substantial OI of around 91 lakhs shares,” said Shrey Jain, Founder and CEO SAS Online.
Looking at the option data, Bank Nifty is likely to consolidate near the current levels, with both Call and Put strikes at 48,500 showing substantial OI.
“Nevertheless, our outlook remains positive as long as Bank Nifty holds above the 48,000 mark,” Jain added.
Also Read: LG Sinha wishes people on eve of Navratri
