MUMBAI: The Indian stock market closed on a positive note on Friday, with the BSE Sensex surging by an impressive 969.55 points to reach an unprecedented high of 71,483.75. The Sensex and Nifty reach unprecedented highs.
Among the Nifty companies, prominent gainers included HCL Technologies, TCS, Infosys, SBI, and Tata Steel, contributing significantly to the overall bullish sentiment. Conversely, HDFC Life, Nestle India, Bharti Airtel, SBI Life, and Bajaj Auto found themselves among the top losers for the day.
Varun Aggarwal, founder and managing director, Profit Idea, said, “We continue to remain bullish on IT, pharma, petrochemicals, FMCG sector stocks. For traders, Nifty RSI is overbought along with midcap Nifty, it is advisable to keep trailing stop losses. Healthy correction from these levels are possible and market might dip. Support for Nifty lies at 20,291”.
The market concluded at an all-time high of 21,456, reaching the long-anticipated target of 21,410 that market analysts had been suggesting for several weeks. This achievement signals a significant milestone in the Indian stock market’s trajectory, underlining the nation’s economic strength and bolstering investor confidence.
Aggarwal said, “This upswing was primarily driven by notable gains in IT, banking, and metal stocks. The Nifty IT index demonstrated a remarkable ascent of 4 per cent today, propelled by key players such as TCS, Infy, and HCL Tech. Other notable gainers in the market included the banking, metals, and oil & gas sectors. Additionally, the Indian rupee strengthened by 29 paise, concluding at 83.01 against the US dollar”.
On a global scale, stocks in both Asian and European markets experienced positive momentum, responding to signals from the Federal Reserve, which hinted at potential rate cuts in 2024. The MSCI AC Asia Pacific Index reached its highest level since early August, with Hong Kong stocks rallying by 2 per cent, while the Nikkei closed 0.9 per cent higher. Futures for European and US equities remained stable.
The record-breaking highs achieved by the Indian stock market underscore the nation’s economic progress and the increasing confidence of investors. However, market analysts caution investors to maintain a balanced approach, emphasizing long-term strategies, regular portfolio rebalancing, and diversification.
Despite the celebratory highs, prudence is advised. The market’s overbought conditions and the potential for a correction warrant cautious consideration from investors. A gradual and cautious approach, coupled with judicious asset allocation, remains crucial for navigating the investment landscape.
Investors are encouraged to view market downturns as opportunities to enhance their portfolios and adhere to a diversified strategy. The achievement of record highs is a testament to the resilience and potential of the Indian stock market, but maintaining a strategic and balanced investment approach is key to mitigating risks in this dynamic financial landscape. (ANI)