Mumbai: The Indian equity markets marked a historic day on Tuesday as both Sensex and Nifty achieved new record highs, with the Sensex breaching the 85,000 mark for the first time and the Nifty approaching the 26,000 level. This surge in the benchmark indices follows the momentum triggered by the Federal Reserve’s significant rate cut last week, propelling Indian markets into a fourth consecutive day of record-breaking gains.
Despite an early dip, the Sensex rebounded strongly, climbing 123.81 points to reach an all-time high of 85,052.42, driven by robust performances in blue-chip stocks like HDFC Bank. Meanwhile, the Nifty gained 39.85 points, closing at a new peak of 25,978.90, just shy of the 26,000 threshold, a historic level now only 21.1 points away.
Among the top gainers in the Sensex were Tata Steel, JSW Steel, Power Grid, HDFC Bank, Tata Motors, and Larsen & Toubro. However, some stocks lagged behind, including Hindustan Unilever, Infosys, Bajaj Finance, Axis Bank, Kotak Mahindra Bank, and UltraTech Cement.
Asian markets also rallied on Tuesday, with Chinese indices posting significant gains following economic stimulus measures by the country’s central bank. Markets in Seoul, Tokyo, Shanghai, and Hong Kong traded positively, with Shanghai and Hong Kong logging substantial gains. The positive global sentiment carried forward from US markets, which closed higher on Monday.
Foreign Institutional Investors (FIIs) continued their buying spree, purchasing equities worth Rs 404.42 crore on Monday, according to exchange data. On the global front, S&P Global Ratings reaffirmed India’s growth forecast at 6.8% for the current fiscal year, further buoying investor sentiment. Additionally, the agency projected that the Reserve Bank of India (RBI) would begin cutting interest rates in its October policy review, which could further support market momentum.
The global oil market also saw an uptick, with Brent crude rising 0.93% to USD 74.59 per barrel, contributing to the overall positive market sentiment.
Monday’s trading had already set the stage for Tuesday’s record highs. The Sensex had surged 384 points to close at a fresh all-time high of 84,928.61, while the Nifty jumped 148.10 points to settle at 25,939.05, with both indices benefiting from gains in energy, banking, and auto sectors. During intra-day trade on Monday, the Sensex touched a peak of 84,980.53, while the Nifty reached 25,956, setting the scene for Tuesday’s breakthrough.
As the Sensex and Nifty near these significant milestones, the trajectory of Asian and European markets will play a crucial role in determining whether the rally in Indian markets can sustain its momentum. With optimism around the US Fed’s rate cut and supportive global cues, the market outlook remains positive in the short term.
