The bulls continued to run riot on Dalal Street on Wednesday as the Nifty50 hit a fresh lifetime high of 19,521. The index closed the session with gains of 99 points, or 0.5 per cent. This was the fourth consecutive session of gains for the Nifty50. The Sensex too rose by 295 points, or 0.9 per cent, to close at 32,837.
Nifty zooms to new highs as monsoon advances, FIIs flow in
The Nifty50 Index has surged by 865 points (4.6 per cent gains) in the last eight trading sessions, hitting new highs as monsoon advances, foreign institutional investors (FIIs) continue to pump money into Indian markets and companies post decent pre-quarterly updates. Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services, said that the rally is being driven by healthy progress in monsoon, strong FIIs inflow and decent pre-quarterly updates.
India’s key equity indices continued their record-breaking run on Wednesday, with the Nifty 50 surpassing the 19,500 mark for the first time ever. The Sensex and Nifty 50 both closed the day with modest gains of 0.5 percent.
On the sectoral front, realty, oil & gas, auto and healthcare stocks surged higher, while IT, financials and FMCG stocks witnessed profit booking.
“The market uptrend is expected to continue, with stock-specific action,” Khemka said. “Global cues were weak due to the release of hawkish minutes of the Federal Reserve’s June meeting.”
Vinod Nair, Head of Research at Geojit Financial Services, believes that the domestic market will continue to rally with the help of unwavering support from foreign investors. Despite weak global cues, India’s underperformance is expected to reverse in the near future.
The mid and small-cap segments are outperforming the benchmark index, with realty, oil & gas, power and consumption stocks leading the sectoral rally.
However, global markets are displaying a negative trend, influenced by hawkish FOMC minutes and US-China tensions.