Nifty touches new all-time high of 23,420: What's driving rally
The Nifty 50 index has reached a new all-time high, climbing over 150 points to hit 23,420.35. This surge was primarily driven by gains in IT and financial services stocks, while FMCG and consumer durables saw a decline. The Sensex also came close to surpassing its previous highs, currently standing at 76,956.28, up by 500 points or 0.65%. The market is eagerly awaiting the release of US CPI data and the Federal Reserve's policy decision.
Midcap 100 index hits record high
The Nifty Midcap 100 index has also reached a milestone, surpassing 54,000 for the first time and peaking at 54,094.40. Nirav Karkera, Head of Research at Fisdom, views midcap and smallcap stocks as a "buy-on-dips opportunity," citing their positive earnings outlook and promising investment potential. He predicts that these segments will outperform the headline indices over the medium term.
Sectoral performance and individual stock movement
With the exception of Nifty FMCG, all other 12 sectoral indices were in the green. BPCL and Coal India emerged as top gainers in the Nifty 50, each recording over a 2% increase. Ruchit Jain, Lead Research Analyst at 5paisa, stated that "The daily and weekly momentum is positive, and hence, we do not expect any significant price correction." He identified immediate support levels for Nifty 50 at 23,050 and 22,930.
Upcoming budget and global factors influencing market
Karkera highlighted the upcoming budget as a key factor to watch from a near-term perspective. He stated that "the upcoming budget has many on the sidelines, especially considering how this coalition government has come into power." Globally, investors are closely monitoring the US CPI data and the Fed policy outcome. Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, stated that "US Fed commentary could provide direction to the market."
