Sensex crosses 85K mark for first time, Nifty hits record high; here's what analysts say

Sensex, Nifty rally today: Benchmark Sensex crossed the 85,000 mark for the first time ever in early trade on Tuesday. The 30-stock index hit the 85,044 (record high) mark in early deals today against the previous close of 84,928. Nifty gained 30 pts to 25,969. The 50 stock index also hit a record high of 25,975. 

Market cap of BSE-listed firms rose to Rs 476.34 lakh crore in today’s session. 

Of 30 Sensex stocks, 15 were trading in the green.  Tata Steel, JSW Steel, PowerGrid, HDFC Bank, Nestle India, and Bharti Airtel were the top gainers on Sensex, rising up to 3.10%. 

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, "Two trends deserve attention. The serious global geopolitical concern continues to be the Middle East where things are getting worse. Israeli strikes on Lebanon have killed hundreds of people triggering concerns. Crude has inched up. Gold and the volatility index are moving up reflecting anxiety. However, the market remains resilient and the undertone continues to be bullish. Investors have to take a call based on these two trends."

As many as 192 stocks hit their 52-week highs today. On the other hand, 20 shares fell to their 52-week lows on BSE. Market breadth was positive as out of 3,777 stocks traded, 2055 stocks were in the green.

Around 1548 stocks traded in the red and 174 stocks remained unchanged.

BSE midcap and smallcap indices rallied 58 pts to 49,578 and 111 pts to 57,497, respectively.

BSE metal goods index was the top gainer rising 726 pts to 32,905. Oil and gas and auto indices rose 126 pts and 120 pts on BSE, respectively.

On the other hand, IT stocks fell the most with the BSE IT index slipping 254 pts to 42,313 in earl;y deals.

Around 264 stocks hit their upper circuits as the stock market rallied on Tuesday. On the other hand, 22 shares hit their lower circuit limits.

Commenting on the derivative  aspect of the market, Dhupesh Dhameja, Technical Analyst, SAMCO Securities said, "Sentiment has decisively shifted in favour of the bulls, backed by heavy put writing and strong buying across broader markets. With consecutive closes above previous highs, call writers moving to higher strikes, and strong put additions, the index maintains a positive structure. A breakout above 26,000 could ignite further momentum, with 25,800 acting as immediate support. As the index ventures into uncharted territory, a buy-on-dips strategy remains favourable as long as it holds above the 25,800 level."

Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One advises investors to keep booking profits. 

"In light of the monthly expiry and overbought parameters, it is advisable to proactively secure profits at regular intervals instead of adopting a complacent approach. Additionally, the broader market exhibits significant sectoral movements that are poised to outperform. Therefore, it is imperative to maintain a stock-specific focus and vigilantly monitor global market developments," said Krishan. 

Foreign institutional investors bought Rs 404.42 crore worth of equities on a net basis on Monday, while domestic investors bought Rs 1022 crore of shares, as per provisional NSE data.