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The Indian stock market experienced a significant surge on Thursday, with the Sensex hitting an all-time high of 83,116.19, surpassing the 83,000 mark for the first time. Similarly, the Nifty 50 index also reached a new record high of 25,433.35, fueled by positive global sentiment and robust performance from bluechip companies.
The market's positive trajectory was initially spurred by strong performance in Asian indices, driven by a rally in tech stocks in US markets overnight. However, the real momentum came during the last trading hour, as investors heavily invested in bluechip stocks.
Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Broke, attributed the late-hour surge to news of China cutting rates on mortgages, aimed at stimulating consumption. This news, which came ahead of a European Central Bank policy meeting, provided a positive boost to the market sentiment.
Siddhartha Khemka, Head of Research at Motilal Oswal Wealth Management, further emphasized that the positive move was also supported by expectations of a rate cut by the US Fed, following inflation data that met expectations. The Nifty 50 closed the day with a substantial gain of 470 points, or 1.89%, settling at 25,388.90. This strong performance was largely driven by bluechip companies, including Reliance Industries, Bharti Airtel, HDFC Bank, Infosys, and L&T, which contributed significantly to the index's rise.
The market's breadth also reflected the bullish sentiment, with 1,727 stocks advancing and 1,003 stocks declining out of 2,819 traded on the NSE. Additionally, comments from Oil Secretary Pankaj Jain regarding potential diesel/petrol price reductions due to falling global crude oil prices also contributed to the positive market closure.
Looking ahead, market participants will focus on domestic inflation and industrial output data expected later in the day. Analysts anticipate inflation to remain below the RBI's 4% threshold for the second consecutive month, potentially adding further positive sentiment to the market.
On the technical side, the Bank Nifty also exhibited a positive breakout, suggesting continued momentum in the coming trading sessions. The index's performance, coupled with its position above key daily moving averages, indicates strength and potential for further gains.
Overall, the Indian stock market's impressive performance on Thursday reflects a confluence of positive factors, including strong global sentiment, robust bluechip performance, and expectations of favorable economic indicators. The market's bullish momentum is likely to continue in the short term, as investors remain optimistic about the future prospects of the Indian economy.