Today’s stock market: The Sensex and Nifty 50, Indian stock market indices, reached new all-time highs in intraday trading on Tuesday.
Today’s stock market: Indian stock market benchmarks the Sensex and Nifty 50 set new all-time highs in intraday trade on Monday, April 1, with widespread purchasing despite mixed global cues.
The Sensex began at 73,968.62, up 0.82 percent from the previous close of 73,651.35, and reached a new all-time high of 74,254.62 inside the first two hours of trading.
The Nifty 50 began at 22,455 against the previous finish of 22,326.90, rising 0.90 percent to a new record high of 22,529.95 in the morning session.
Mid and small-cap groups experienced significantly greater improvements. In the morning trading session, the BSE Midcap index surged by more than 1%, while the Smallcap index increased by more than 2%.
The market capitalization of BSE-listed corporations increased to over ₹392 lakh crore from around ₹387 lakh crore in previous session.
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Why is the Indian stock market gaining today?
According to experts, the market has a favorable undercurrent due to India’s excellent economic prospects. Furthermore, the anticipation of rate decreases in the future months is supporting market mood. Investors are buying Indian equities following the recent correction, as they remain optimistic about the Indian stock market in the medium to long term.
V K Vijayakumar, Chief Investment Strategist of Geojit Financial Services, stated that the market has a bullish undertone and is gaining speed.
“The market has been showing signs of consolidation but the spurt in Nifty by 322 points on the last 2two trading days indicates that the upward momentum can be sustained,” Vijayakumar, the market analyst, said.
Vijayakumar stated that several mutual funds have begun restricting redemptions from smallcap schemes due to worries about frothy valuations in this segment, which could result in increased flows of funds into largecaps. This would lift the huge caps.
According to brokerage firm ICICI Direct, the Nifty 50 may continue to trade on a positive bias, with immediate support near 22,000.
The brokerage firm anticipates the index to continue its northward trek and gradually approach 22,700 in the next weeks.
“Empirically, in General Election year, the index has a tendency to bottom out in the first quarter of the calendar year, followed by a rally (minimum 14 per cent rally from lows) towards the General Election outcome in each of seven instances over past three decades,” ICICI Director said in a statement.
“In the current context, we expect the index to continue the same rhythm because it already went through a corrective phase in the first quarter and built a stronger base. As a result, the election outcome laid the foundation for the second leg of a bull surge to 23,400. In the process, 21,900 would serve as immediate support, which we intend to maintain,” the brokerage business stated.
The Sensex and Nifty 50 both saw remarkable gains of 29% and 25%, respectively, in the previous fiscal year (FY24). Experts believe that these indexes will continue to expand strongly in the coming fiscal year, despite persistent obstacles.
“Considering the consistent earnings growth and an easing interest rate environment, the Nifty 50 may deliver a healthy double-digit return in the low to mid-teens,” Naveen Kulkarni, Chief Investment Officer at Axis Securities PMS, told Mint.
Niraj Kumar, Chief Investment Officer at Future Generali India Life Insurance Company expects FY25 to be driven by sustained corporate earnings growth, policy continuity and a favourable geopolitical landscape and any disappointment on these fronts may have negative ramifications on the market.
With inputs from Livemint!
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