Sensex surpasses 84,000 for the first time, Nifty hits record high

Midcap and smallcap stocks also experienced significant buying pressure

September 20, 2024

Fresh records for Sensex, Nifty

In a landmark moment for the Indian stock market, the Sensex crossed the 84,000 mark for the first time, reaching an all-time high of 84,213, while the Nifty also set a new record at 25,716 during mid-session trading on Friday. This surge follows positive sentiment in the market, largely driven by a recent interest rate cut by the US Federal Reserve.

The overall market trend remained optimistic, with 1,733 shares advancing and 650 declining on the National Stock Exchange (NSE).

Midcap and smallcap stocks also experienced significant buying pressure. The Nifty midcap 100 index rose by 527 points, or 0.89%, to reach 59,879, and the Nifty smallcap 100 index climbed 199 points, or 1.04%, to 19,344. Almost all sectoral indices were in the green, with major gains seen in auto, metal, realty, energy, and FMCG sectors.

Key gainers in the Sensex included JSW Steel, M&M, L&T, Maruti Suzuki, Tata Steel, Power Grid, ICICI Bank, Nestle, Bharti Airtel, and Tech Mahindra, while TCS and Axis Bank faced losses.

Market experts attributed the rally to the performance of US markets, noting that the Dow and S&P 500 had set new record highs, reflecting a robust global bull run. They highlighted that strong labor market data from the US suggests a slowing but not deteriorating employment situation, which, combined with controlled inflation, indicates a favorable economic environment.

A notable trend observed in India is the outperformance of the Bank Nifty, which has risen 2% this week, compared to a modest 0.2% increase in the Nifty. However, concerns over valuation have led to some weakness in the broader market, a trend expected to persist.

In terms of investment activity, foreign institutional investors (FIIs) turned net sellers, offloading equities worth Rs.2,547 crore on September 19. In contrast, domestic institutional investors continued to show confidence, purchasing equities worth Rs.2,012 crore on the same day.

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