On September 27, 2024, India's domestic equity indices, the Sensex and Nifty 50, reached record highs for the seventh consecutive session, driven by strong performances in IT and metal stocks. The Sensex rose by 62 points, or 0.1%, to 85,898, while the Nifty increased by 39 points, or 0.2%, to 26,255, with the Sensex hitting a peak of 85,966 and the Nifty reaching 26,271.
Market analysts attribute this bullish trend to substantial liquidity in the market, bolstered by robust inflows from domestic institutional investors (DIIs) and foreign investors. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, indicated that while frontline companies remain strong, the mid-cap index has shown signs of a downturn, suggesting a potential market consolidation in the coming week.
The IT sector saw a notable rise, with Nifty IT stocks climbing nearly 2% following Accenture's announcement of an increased annual revenue growth forecast of 3-6% for 2025. This forecast is viewed as a positive indicator for Indian IT firms. Additionally, the Nifty Metal index rose over 1%, led by gains in major companies like Hindalco, Vedanta, and Tata Steel, following China's announcement of a stimulus package aimed at revitalizing its economy.
In contrast, sectors such as Nifty Bank, Infra, and Realty experienced declines ranging from 0.1% to 1%. Despite the mixed performance among sectors, the overall sentiment in Asia-Pacific markets was positive, with Chinese stocks benefiting from the government's stimulus measures. In the US, all major indexes advanced, with the S&P 500 achieving a new record after favorable economic data, including a drop in weekly jobless claims and confirmed Q2 GDP growth of 3%.
This surge in the Indian equity markets reflects broader global economic optimism, highlighting the interconnectedness of international markets.
Source: Moneycontrol.com, September 27, 2024