MUMBAI: The Sensex and Nifty soared to all-time highs on September 20, fueled by robust gains across the auto, energy, and banking sectors. Today, Sensex closed at a new milestone of 84,544, up 1360 points or 1.63 per cent, while the Nifty, after reaching a record high of 25,806, closed at 25,791, up 375 points or 1.48 per cent.
Bank Nifty closes 1.42 per cent or 755 points up at 53,793, Nifty mid-cap closes 1.44 per cent or 857 points up at 60,209. All sectoral indices closed in green with auto, energy, banks, capital goods, FMCG, Power, telecom, realty and metals closed between 1 and 3 per cent up.
Major sectoral indices, like Bank and Financial Services, FMCG, and Consumer Durables, achieved new highs, reflecting the rally in the frontline indices. As per experts, the expectation of an RBI rate cut post-rate cut by Fed has fueled optimism in the market, pushing the Indian stock indices to record levels. Investors anticipate improved economic conditions and strong corporate earnings.
“In today’s session, market sentiment seemed boosted as expectations around the Fed rate cut continue to fuel optimism, with the global market showing strength. As a result, buying was seen across sectors, with consumption and realty leading the charge on Friday. Both sectors rose more than 2% in the intraday. This rally is likely driven by the possibility of interest rate cut announcements in the upcoming RBI policy”, said V L A Ambala, SEBI-registered research analyst and co-founder of Stock Market Today.
“Traction is on rate-sensitive sectors like Auto and Finance. Conventional sectors like FMCG are also performing well in anticipation of good results led by the dual benefit of demand and reduction in input cost”, said Vinod Nair, head of research, Geojit Financial Services.
Krishna Appala, Sr. Research Analyst, Capitalmind Research, said that initially, the reaction followed a typical ‘buy the rumour, sell the news’ pattern, but within a day, the market resumed its upward trend, hitting an all-time high. This is positive for the long term, particularly for sectors like Financials, Pharma, and IT, where we expect demand to pick up, he added. (ANI)