Sensex and Nifty Near Record Highs Amid U.S. Rally and Foreign Investments

Indian market indices Sensex and Nifty advanced towards new lifetime highs driven by U.S. market rallies and foreign investments. Nifty 50 rose by 187.45 points, closing at 25,010.60, while Sensex surged by 611.90 points to 81,698.11. Market experts attribute the gains to U.S. monetary policy signals.

The Indian stock market indices Sensex and Nifty edged closer to their fresh lifetime highs on the week's first trading day, propelled by U.S. market rallies and fresh foreign portfolio investments. By the close of Monday's trade, the Nifty 50 of the National Stock Exchange (NSE) climbed 187.45 points to settle at 25,010.60, while the BSE Sensex soared by 611.90 points, ending at 81,698.11.

This surge added over Rs 2 lakh crore to the market capitalization of BSE-listed companies, which hit a record high of Rs 462.40 lakh crore (USD 5.51 trillion). Market sentiment was buoyed by potential shifts in U.S. monetary policy, leading to a 1.5 per cent rise in the Nifty IT Index.

Top gainers at the NSE included Hindalco Industries, NTPC, HCL Tech, Bajaj Finserv, and ONGC. Conversely, Apollo Hospitals, Hero MotoCorp, Adani Ports and SEZ, Maruti Suzuki India, and Grasim lagged. "Due to the heavy liquidity in our Indian market, DIIs and mutual fund houses have been treating every dip as a buying opportunity," said VLA Ambala, Co-founder of Stock Market Today. This bullish trend is driving FOMO buying activities, particularly in the mid and small-cap categories.

Vinod Nair, Head of Research at Geojit Financial Services, noted, "The U.S. FED has signaled a rate cut in September, reflected in the decline in U.S. treasury yields and dollar index, leading to a rally in global markets. Indian markets hit a new high driven by a FIIs stance change to positive and strong DIIs inflows." The Nifty Midcap 100 gained 0.64 per cent during the trade.

Sector-wise, IT, Metal, Realty, and OMCs posted gains up to 2.16 per cent with the Nifty Metal Index surging over 2 per cent, followed by Nifty Realty (1.7 per cent) and Nifty IT (1.4 per cent). Later this week, the market will focus on first quarter GDP data slated for Friday. The Reserve Bank of India projected a GDP growth of 7.2 per cent for 2024-25.

India's GDP grew by an impressive 8.2 per cent during the financial year 2023-24, maintaining its status as the fastest-growing major economy. (ANI)

(With inputs from agencies.)