The bulls on Dalal Street charged full steam ahead, with the Sensex and Nifty scaling fresh record highs for the sixth consecutive session on September 26. The benchmark indices were powered by gains in auto and banking stocks. Both, Nifty Bank and Nifty Auto hit a lifetime high of 54,467 and 27,526, respectively.
At close, the Sensex was up 666 points or 0.8 percent at 85,836 and the Nifty was up 211 points at 26,216. About 1,603 shares advanced, 2,200 shares declined, and 102 shares remained unchanged. In the last hour of trade, the Sensex touched a lifetime high of 85,930 and the Nifty reached a milestone of 26,250.
"The Indian market is reaching new highs, anticipating a strong recovery in corporate earnings for the H2FY25, fuelled by expected government expenditure," said Vinod Nair, Head of Research at Geojit Financial Services. Analysts also attributed the optimism in the Indian market to the Fed initiating its monetary easing policy and China's economic stimulus announcement.
Follow our live blog for all the market action
"With the current bullish momentum underway, aggressive targets for Nifty are seen at 26,500-27,000 zone while the index is likely to find support at 24,755," said Prashanth Tapse, Senior VP (Research) at Mehta Equities. He further noted that despite global headwinds and Middle East tensions, "India's growth fundamentals remain resilient" but cautioned investors to stay alert as valuations climb post-rally.
All 13 sectoral indices closed in the green on the day of the monthly expiry of F&O contracts.
The auto index rose over 2 percent with M&M, Maruti Suzuki, and Tata Motors leading the charge. Maruti Suzuki shares surged 4.5 percent after Japan's Suzuki Motor announced plans to expand its Indian dealership network by 70 percent to 6,800 by FY30.
Meanwhile, the metal index extended its five-day winning streak and also rose over 2 percent, fueled by optimism from China's stimulus measures aimed at reviving its economy. Vedanta, Tata Steel, and Hindalco led te gains in the index.
Nifty Bank ended 0.3 percent higher after reaching an all-time high of 54,467 intraday led by SBI, IndusInd Bank, and Axis Bank. "Bank Nifty has more potential to move up and there is valuation comfort in this space," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Also Read | A 'ferocious' rally in largecaps now will be a sign of risk, cautions Ramesh Damani
The broader market failed to keep up with the benchmarks. While BSE Midcap index closed flat, the BSE Smallcap index slipped by 0.4 percent. "Notably, this rally (in Sensex and Nifty) is led by large-cap stocks, which are more fairly valued compared to mid and small caps, which are exhibiting signs of fatigue," said Nair added.
Among Nifty 50 gainers, M&M, Shriram Finance, Tata Motors, Grasim, and Maruti Suzuki advanced 3-5 percent. On the downside, NTPC, Hero MotoCorp, L&T, ONGC, and Cipla shares slid 0.3-1 percent, becoming the worst-hit stocks on the index.
Later in the day, market participants will closely monitor comments from Fed Chair Jerome Powell and other key officials for insights into the central bank's next monetary steps. Investors are now focused on the upcoming weekly US jobless claims data, set to be released today, and the August US personal consumption expenditure (PCE) index, due on September 27.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
