Mumbai [SD News Agency]: Benchmark stock market indices soared to an all-time high on Monday, propelled by a robust rally in IT and auto stocks.
The S&P BSE Sensex rose by 155.32 points to reach 82,521.09, while the NSE Nifty50 gained 77.20 points, touching 25,313.10 as of 9:35 AM.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the market has entered a phase of steady but moderate growth, driven by the accumulation of quality large-cap stocks.
“Foreign Institutional Investors (FIIs) turned net buyers last week, largely due to some significant bulk deals, which have improved market sentiment. If the market closes positively today, it will mark a record for the Indian stock market, with the Nifty achieving a 13-day winning streak. Sentiment-wise, this is a positive development,” he added.
Leading the gainers on Nifty50 was Hero MotoCorp, which saw a strong increase of 2.50%. Bajaj Auto also performed well, rising by 2.28%.
HDFC Life showed impressive growth, climbing 1.77%, while Tata Consumer Products and SBI Life rounded out the top gainers, advancing 1.66% and 1.48%, respectively.
On the downside, Tata Motors experienced the largest decline, dropping by 1.44%. Hindalco followed with a fall of 1.13%. Mahindra & Mahindra (M&M) also faced losses, declining by 0.80%. Dr. Reddy’s Laboratories and ONGC completed the list of top losers, dipping by 0.83% and 0.62%, respectively.
“Sectoral rotations are occurring faster now than before. IT stocks have rebounded on hopes of increased tech spending in the US, which is likely to be facilitated by the expected soft landing of the US economy. Pharma stocks are witnessing accumulation due to improving business prospects. Profit booking is happening in sectors like railways and defense, triggered by valuation concerns. The FY 25 Q1 GDP print at 6.7% indicates mild sluggishness in the economy, which may prompt the RBI to consider rate cuts in the next monetary policy meeting. Even though banks are struggling for deposits, rate cuts will improve prospects for banking stocks,” said Vijayakumar.
In the broader market indices, the Nifty Midcap100 saw a slight decline of 0.10%, while the Nifty Smallcap100 edged up by 0.04%. Meanwhile, the India VIX increased by 1.41%.
“This Monday morning, the stage is set for solid gains in the benchmark Nifty, bolstered by Wall Street’s surge following the Fed’s preferred inflation gauge, which signals potential rate cuts in September. Optimism on Dalal Street is further fueled by a 3.1% drop in WTI crude futures and strong FII buying of Rs 9,217 crore last week. Investors are now eyeing the August US jobs report, set to be released on September 6th, which could shape the Fed’s next move. Meanwhile, Bajaj Housing Finance’s IPO is set to open on September 9th, aiming to raise Rs 6,560 crore,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
The sectoral indices on Nifty showed mixed performance in early trade. Among the gainers, Nifty IT rose by 0.73%, followed by Nifty FMCG at 0.65%, Nifty Financial Services at 0.21%, and Nifty Private Bank at 0.25%. Other sectors that saw an increase included Nifty Oil & Gas, up by 0.45%, and Nifty Midsmall Healthcare, which rose by 0.29%.
On the downside, Nifty Metal declined by 0.55%, followed by Nifty Pharma, which fell by 0.29%, Nifty Media with a 0.40% drop, and Nifty PSU Bank, which lost 0.25%. Nifty Auto and Nifty Healthcare also ended in the red, losing 0.08% and 0.15%, respectively, while Nifty Consumer Durables dipped by 0.41%, and Nifty Realty was down by 0.19%.