Nifty Hits Record High Driven by IT Sector and Positive Global Cues

Nifty at NSE reached a historic high of 25,114.05, driven by IT sector gains and foreign investor buying amid US rate cut hopes. Market experts predict further upside, with low volatility and consolidation expected. India's GDP growth remains robust, further boosting market sentiments.

The Nifty index at the National Stock Exchange (NSE) soared to a new lifetime high of 25,114.05 on Wednesday during trading hours, powered significantly by the IT sector. The optimism was further buoyed by foreign portfolio investors bolstered by hopes of a rate cut in the US.

IT sectoral stocks led the charge with a 1.96 percent increase, with major players LTIMindtree, Wipro, and Infosys emerging as the top gainers. Market opened nearly flat with Nifty starting above 25,000 and BSE Sensex opening at 81,800. Despite a tight trading range in recent sessions, Nifty finally achieved a breakthrough.

Ajay Bagga, Market and Banking Expert, expressed optimism stating, 'This new high marks a significant milestone post the geopolitical upheavals and other economic disruptions. The structural bull market is back, supported by improved market trends and enhanced FII flows.' Geojit Financial Services' V K Vijayakumar added, 'The market is now in a consolidation phase with low volatility, a trend likely to persist.'

The Reserve Bank of India's latest monetary policy projects GDP growth at 7.2 percent for 2024-25, with Q1 growth at 7.1 percent. India's GDP grew 8.2 percent in FY 2023-24, cementing its status as the fastest-growing major economy. The Nifty 50 index, which began on April 22, 1996, with 1136.28 points, has now grown nearly 22 times.

(With inputs from agencies.)