Sensex crosses 79,000 for first time, Nifty nears 24,000 milestone
Indian benchmark indices Sensex and Nifty reached new lifetime highs today, marking the fourth consecutive day of a bull run. The Sensex crossed the 79,000-mark while the Nifty 50 index exceeded 23,900, propelled by heavyweight stocks such as Reliance Industries, Bajaj twins, and HDFC Bank. V K Vijayakumar from Geojit Financial Services predicted that this momentum could push the Sensex to reach 80,000 levels.
Market trends and predictions amid bullish momentum
Despite valuation concerns, Vijayakumar expects the market to remain bullish in the near term. He highlighted a healthy trend of fundamentally strong large caps leading the upward move in sectors like banking and telecom. However, he cautioned about potential impacts from rising US bond yields which could slow down the bull run by causing significant foreign outflows. Deepak Jasani from HDFC Securities also anticipates a positive trend in the near future with Nifty's resistance at 24,125.
Sector performance and investment recommendations amid bull run
Sectorally, Nifty Metal emerged as the top performer, led by gains in Hindustan Zinc, JSW Steel and Tata Steel. Nifty Realty and Nifty Media indices also climbed up to 0.6% each. However, Nifty IT, Nifty Auto and Bank Nifty slipped into negative territory. Vijayakumar recommended investment in PSU banks due to their attractive valuations and potential positive response to good Q1 results.
Record highs continue with banking and IT stocks leading
On Tuesday, Sensex and Nifty closed at fresh record highs, driven by gains in banking and IT stocks. This surge followed RBI data showing a current account surplus of $5.7 billion, or 0.6% of the GDP, in Q4 of fiscal year 2023-24. Among banking stocks, Axis Bank, HDFC Bank and ICICI Bank saw significant increases. The upward momentum continued on Wednesday with infrastructure and energy stocks propelling Nifty and Sensex to new peaks.
