Sensex and Nifty closed flat after having hit record highs intraday on September 24 fueled by last week's US rate cut and a rally in metal stocks following China's fresh stimulus measures. The Sensex surged to an all-time peak of 85,163, while the Nifty breached the 26,000 milestone for the first time, touching 26,011.
At close, the Sensex was down 14 points or 0.02 percent at 84,914 and the Nifty was up 1 point or 0.01 percent at 25,940. About 1,871 shares advanced, 1,946 shares declined, and 84 shares remained unchanged.
"The market's strong performance underscores investor confidence in India's growth potential, propelling the Nifty and Sensex to fresh record levels," said Vikram Kasat, Head - Advisory, PL Capital - Prabhudas Lilladher. Kasat said that several factors such as resilient macroeconomic indicators and increased foreign institutional investor (FII) inflows contributed to the rally seen in the market today.
The Indian benchmarks managed to hit record highs today despite escalating geopolitical concerns in the Middle East.
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Vishnu Kant Upadhyay, AVP, Research and Advisory at Master Capital Services said, " A significant catalyst for this upward trajectory has been the BJP-led NDA's victory in the 2024 general elections, securing a third consecutive term."
In just 38 sessions, Nifty 50 soared from 25,000 to 26,000. During today's session, Nifty 50 added Rs 5.8 lakh crore to investor wealth.
Indian benchmarks have been setting fresh records daily since the US Fed's 50-basis point rate cut on September 18. Today's rally was driven by metal, IT, and auto stocks, while FMCG and banking stocks struggled to keep pace. Vinod Nair, Head of Research at Geojit Financial Services attributed the losses in FMCG and banking stocks to 'profit -booking at higher levels.'
The Nifty Metal index surged nearly 3 percent, fueled by a jump in Tata Steel, Hindalco, and Vedanta, following China's fresh stimulus measures aimed at reviving its economy.
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After a slow start, Nifty IT gained momentum, rising by 0.6 percent with Tech Mahindra, HCLTech, and Coforge leading the rebound. The IT index had declined by half a percent in the morning after a recent research report by Jefferies said that HCL Tech, Tech Mahindra, and LTIMindtree see no significant change in the demand scenario.
However, banking indices, Nifty Bank and Nifty Private Bank snapped their eight-day winning streak and fell by 0.3 percent each due to selling pressure from Kotak Mahindra, IndusInd Bank, and Punjab National Bank.
In the broader market, the BSE Midcap index inched up 0.2 percent, while the Smallcap index remained flat.
When it comes to individual stock performances, Adani Enterprises, Tech Mahindra, Power Grid, Hindalco, and Tata Steel emerged as the top gainers on Nifty 50, with gains of 1-4 percent. Conversely, Shriram Finance, UltraTech Cement, Grasim, HUL, and SBI Life faced declines, with losses ranging from 1-3 percent.
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