Nifty, Sensex hit fresh high today: What's fueling the rally?
India's major stock market indices, the Sensex and Nifty, started the week by setting new records. The Sensex soared to a new high of 74,658 while the Nifty scaled a new peak of 22,623. This surge was primarily driven by positive signals from US markets on Friday and increased buying in the IT and auto sectors.
Nifty shows bullish trend with major stocks trading in green
The Nifty demonstrated a bullish trend with 41 stocks trading in the green around 9:30 am, while nine were in the red. The top gainers included Bharat Petroleum Corporation (BPCL), Tata Steel, Axis Bank, Bajaj Finserv, and Titan Company. On the other hand, Adani Ports & Special Economic Zone, Apollo Hospitals, Wipro, Divi's Laboratories, and HDFC Bank were among the top losers.
Energy, realty and metals sectors witness significant gains
In terms of sectors, energy, realty, and metals saw significant gains. Out of the 15 Nifty sectoral indices, 12 were trading positively. The Nifty Oil & Gas and Nifty Realty indices gained over 1%. However, banking stocks experienced some pressure with Nifty Bank trading 0.09% lower at 48,448. The auto and IT sectors also saw increased buying activity.
Market analyst cautions investors amid changing expectations
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, warned investors about rapidly changing macroeconomic expectations. He noted that market expectations for rate cuts by the Fed have been fluctuating throughout the year. Despite these changes in expectations, he observed that "the mother market continues to be buoyant, setting new records."
Future market trends influenced by IT and financial sectors
Looking ahead, Vijayakumar suggested that future market trends would be influenced by commentary from IT companies as Q4 results season begins with TCS announcing its earnings on April 12. He anticipates muted results for this sector. However, he expects strong results from financials that could potentially drive Bank Nifty higher, led by banking giants like HDFC Bank and ICICI Bank.