Sensex, Nifty touch new all-time driven by Bank Nifty
Amidst a backdrop of optimistic global cues, the benchmark equity indices have commenced the trading session on a positive note. The NSE Nifty 50 opened at 20,156.45, marking a gain of 53 points, while the BSE Sensex initiated the day at 67,659.91, up 140.91 points. The broader indices, mirroring the overall sentiment, predominantly showed green. Notably, the Bank Nifty opened with an impressive surge of over 100 points, underlining the strength in the banking sector.
Top gainers and losers
Leading this rally are metal stocks, with companies like M&M, JSW Steel, Tata Steel, and Hindalco among the top gainers, registering gains of up to 2%. Other prominent stocks contributing to the surge include Wipro, HDFC Bank, HCL Tech, and Bajaj Auto. Meanwhile, some key players like Hindustan Unilever, Asian Paints, Nestle, Adani Ports, and HDFC Life experienced losses.
Broader market outperforms as midcap and smallcap indices soar
While the key indices set new records, the broader market demonstrated remarkable resilience. Both the BSE MidCap and SmallCap indices posted impressive gains of up to 0.70%. The Nifty Smallcap 250 and Nifty Smallcap 50 also rose by 0.74% and 0.86%, respectively, while the Nifty Midcap 150 and Nifty Midcap 50 recorded gains of 0.56% and 0.44%, respectively.
Sectoral performance: IT and Auto lead the way
Nifty IT index surged by 0.79%, reflecting the strong performance of the IT sector. The auto index followed closely behind with a gain of 1.28%, while the PSU Bank index saw a notable jump of 0.57%. The healthcare index also contributed to the bullish sentiment with a gain of 0.44%. On the flip side, the media index fell by 0.33%, FMCG tanked by 0.24%, and the oil & gas index dropped by 0.10%.
What is fueling the market rally?
First, strong macroeconomic indicators, such as a drop in CPI-based inflation and robust industrial output. Second, expectation of a pause in US Fed rate hikes, despite slightly higher US inflation. Third, with the Nifty crossing the 20,000 mark, there is growing optimism among investors. Fourth, a significant surge in participation from retail investors has injected liquidity into the market. Lastly, the fear of missing out (FOMO) phenomenon is also at play, with retail investors counting on mid-cap and small-cap stocks.
