Indian benchmark indices rallied to touch fresh lifetime highs on Wednesday, a day before Eid ul Adha holiday. The 30-share BSE Sensex pack rose 301 points or 0.49% to hit an all-time high of 63,716, while the broader NSE Nifty50 moved 91 points or 0.48% up to trade at its lifetime peak of 18,908
Bank Nifty index also jumped in early trade to hit a fresh all-time high of 44,419.50. Mid- and small-cap shares were positive as Nifty Midcap 100 edged 0.43% higher and Nifty small-cap rose 0.70%. Nifty Metal, Nifty PSU Bank, Nifty Consumer Durables and Nifty Auto were outperforming benchmark Nifty50 by rising as much as 0.78%, 0.61%, 0.54% and 0.44%, respectively
Among stocks, Adani Enterprises, Adani Ports & SEZ, Grasim Industries, Eicher Motors and Bajaj Finance were the top gainers among Nifty50 constituents. Indian share market bulls followed global market trends as Wall Street equities edged higher overnight as sentiment improved on strong economic data
Market breadth was in favour of the bulls today as out of the 2,976 stocks traded, 1,964 shares advanced, 879 declined and 133 remained unchanged. More than 100 scrips hit 52-week high, while just 12 were at 52-week lows. A total 75 stocks have hit upper circuit as of 10:00 am
Asia-Pacific markets were mixed on Wednesday. In Australia, the S&P/ASX 200 climbed 1.31%, Japan's Nikkei 225 rebounded after three straight days of losses. South Korea’s Kospi, Hong Kong’s Hang Seng index, and China's Shanghai Composite index were down marginally
Positive FII inflow has also pushed Indian benchmarks higher. Foreign institutional investors (FIIs) bought a net Rs 2,024 crore worth of Indian equities, while domestic investors sold Rs 1,991 crore of shares, as per provisional NSE data. In the last three months, Nifty50 has rallied more than 11%, while Sensex has jumped over 10% during the same period
“Nifty has crossed the previous ATH and moved beyond the crucial 18,900 levels for the first time in history as market sentiment remained buoyed by the progressive news about the HDFC-HDFC Bank merger and strong current account deficit data for the fourth quarter. We believe that a rapid and widespread progress of monsoon, albeit with delay, should keep investors interested in the markets in the short term,” said Swapnil Shah Director of Research StoxBox
"There is renewed vigour in the market which bulls might utilise to take the Nifty to new record. However, the high market valuation continues to be a concern for the near-term. Investors can book some profits at record highs," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services
"The Nifty has surged to an unprecedented all-time high, propelled by the solid fundamentals of the Indian economy and the consistent stability in global cues witnessed recently. The current market sentiment indicates a sustained structural bull run, making it difficult to assign an immediate target to this upward trend," said Santosh Meena, Head of Research, Swastika Investmart Ltd
However, according to Santosh Meena, the levels around 19,000–19,191 could potentially serve as a resistance area, which might trigger profit booking from higher levels. "Conversely, on the downside, the immediate support level can be identified at 18700, while 18450 is expected to provide a substantial base for the market," he said
“Strong institutional flows, healthy macros and robust earnings growth drove domestic market towards its new highs. Even the current valuations are reasonable at 19x one-year forward PE which at previous peak had touched a high of 24x. With monsoon kicking in and RBI taken a rate pause, the strong momentum in earnings is likely to continue. Thus at current valuations, market is expected to continue its upmove and remain buoyant,” said iddhartha Khemka, Head of Retail Research, Broking and Distribution, MOFSL.
“Bank Nifty witnessed a strong bullish move in the previous session as the bulls took control and surpassed the hurdle of 44,000. "If the index manages to sustain above the 44,000 level, it is likely to continue its upward momentum towards the 44500 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities
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