For the second time this week, both the Indian stock market indices, Sensex and Nifty, have reached new record highs and closed at unprecedented peaks.
The benchmark Sensex of the Bombay Stock Exchange (BSE) saw a surge of over 800 points, ending the day at a new all-time high. The Nifty, which represents the National Stock Exchange (NSE), climbed over 200 points and closed at a record peak on Friday.
Continuing its rally for the third consecutive day, the Sensex increased by 803.14 points or 1.26 percent, settling at a historic closing high of 64,718.56. It also reached a record intra-day peak of 64,768.58, soaring by 853.16 points or 1.33 percent.
Likewise, the Nifty rose by 216.95 points or 1.14 percent, ending the day at an all-time high of 19,189.05. It reached its intra-day peak of 19,201.70, rallying by 229.6 points or 1.21 percent.
Leading the Sensex pack, Mahindra & Mahindra performed the best with a rise of over 4 percent. It was followed by IndusInd Bank, Infosys, Tata Consultancy Services, Maruti, Larsen & Toubro, Tech Mahindra, Wipro, Power Grid, HDFC Bank, HDFC, Bajaj Finance, and Reliance Industries. However, ICICI Bank and NTPC were the underperformers.
Additionally, midcap stocks reached a new record high, while smallcap stocks remained close to their 52-week high.
Out of the 13 major sectoral indexes, 12 witnessed gains, with notable increases seen in the IT index and auto index, both rising by over 2% each. Furthermore, the auto and bank indexes surged to achieve fresh all-time highs.
Analysts attribute the rise in Indian equities to strong foreign inflows, cooling inflation, and steady corporate earnings growth.
Deepak Jasani, head of retail research at HDFC Securities, stated, “The current upward momentum could continue, and the 19000-19200 band could be the next resistance for the Nifty in the near term.”
Vinod Nair, Head of Research at Geojit Financial Services, attributed the new highs in the Indian stock market to positive global market trends, a favorable revision in Q1 GDP, a decline in jobless claims, and positive results from the US bank stress test conducted by the Federal Reserve.
Previously, on Wednesday, the Sensex had surged by 499.39 points or 0.79 percent, settling at its lifetime closing high of 63,915.42. The Nifty also recorded gains, climbing by 154.70 points or 0.82 percent to end at a record high of 18,972.10. The markets were closed on Thursday due to the observance of Eid al-Adha, also known as Bakrid.
Revised upward figures for first-quarter economic growth in the United States, along with an unexpected decrease in jobless claims and favorable outcomes from the Federal Reserve’s stress test, have contributed to alleviating concerns about economic growth in the world’s largest economy.