NEW DELHI: Indian stock indices – Sensex and Nifty – closed at a record high on Monday, extending the gains accumulated over the past several weeks.
Sensex settled at 80,664.86 points, up 0.2 per cent, while Nifty settled at 24,586.70 points, up 0.4 per cent. Among sectoral indices, PSU banks surged the most at 3.07 per cent, followed by Nifty media at 1.53 per cent, Nifty pharma at 1.13 per cent, Nifty realty at 1.34 per cent.
“The Indian market continues to experience optimism driven by positive expectations from the upcoming Union Budget, robust FII (foreign institutional investors) inflows, and better-than-expected results from the IT sector. Additionally, the initial results from PSU banks have triggered a strong rally in the PSU index. However, the degree of optimism in the broad market is moderating as we are heading towards the budget D-day next week,” said Vinod Nair, Head of Research, Geojit Financial Services.
As the week gone by saw Indian stock markets touching fresh all-time highs and at the same time volatile trading days, the market is likely to see stock-specific moves this week on the back of ongoing earning season.
The market participants will also digest elevated inflation data, besides eyeing the much-awaited Budget to be presented on July 23.
Last week, the benchmark indices moved higher and in the process touched a fresh high. The upmove in the market was triggered by the latest moderation in US inflation, better-than-expected TCS results, and lack of negative market fundamentals.
Sensex and Nifty have cumulatively accumulated 11-13 per cent returns so far in 2024-25. Strong buys by both foreign and domestic institutional buyers also have been supporting the stock markets.
The Indian stock market will remain closed on July 17 due to Muharram.
“We maintain a positive outlook and recommend a “buy on dips” strategy. In addition to favorable domestic factors, positive global cues are boosting sentiment. Traders should continue to focus on stock selection and trade management,” said Ajit Mishra – SVP, Research, Religare Broking Ltd. (ANI)