Sensex crosses 79,000, Nifty hits all-time high as bank stocks rally

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Benchmark stock market indices opened lower on Thursday, dragged by a decline in financial services and banking stocks, after closing at record highs in the last session.

Sensex and Nifty reached new lifetime highs, continuing a four-day bullish streak coinciding with the monthly F&O expiry.

The Sensex crossed the 79,000 mark, while the Nifty 50 index surpassed 23,900, driven by a rally in bank stocks.

Market experts are optimistic about this upward trend, anticipating that the benchmark indices will continue to set new records.

“The market will remain bullish in the near-term despite the valuation concerns, and the ongoing momentum has the potential to take the Sensex to 80000 levels. A healthy trend in the market is that now the up move is being led by fundamentally strong largecaps in sectors like banking and telecom,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

The S&P BSE Sensex added 255 points to 78,930, while the NSE Nifty50 gained 69 points at 23,938 as of 10:15 AM.

The stock market was also driven by gains in major stocks such as Reliance Industries, Bajaj Twins, and HDFC Bank.

“With RIL, which had not participated in the rally till yesterday joining the bull bandwagon, the rally has the strength to continue. But the rise in U.S. bond yield might perhaps trigger some large FII selling in the coming days putting brakes on the rally. So long as the massive domestic liquidity support to the market continues there are no no potential triggers that can cause a sharp correction in the market. PSU banks look attractive from the valuation perspective, and therefore, they have the potential to react positively to good Q1 results,” added Vijayakumar.

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