Reliance Drives Indian Markets To Record Highs, Nifty Hits 17-Year Winning Streak

Indian equity markets reached new heights on Thursday, with the NSE Nifty 50 and S&P BSE Sensex hitting record levels. This surge was largely driven by Reliance Industries, which announced plans to accelerate AI adoption and consider issuing bonus shares, sending positive ripples across the market.

Record Highs for Nifty 50 and Sensex

Both the Nifty 50 and Sensex rose by approximately 0.6% during the day, touching all-time highs. Although they later trimmed some gains, they still closed up 0.4%, setting record closing levels. The Nifty 50’s remarkable performance over the past 11 sessions has resulted in a 4% increase, marking its longest winning streak since October 2007.

Strong Domestic Inflows Power Indian Markets

Indian markets have been among the best performers globally this year, buoyed by strong domestic inflows and a solid economic outlook. Investors have shown unwavering confidence, with many buying into dips to capitalize on the ongoing upward momentum. Samrat Dasgupta, CEO of Esquire Capital Investment Advisors, noted, “The party will continue in Indian markets as long as liquidity remains supportive.”

Reliance’s Strategic Moves

Reliance Industries, the second-largest stock in the Nifty 50, rose by 1.51% following the company’s announcement to consider a bonus share issue at its upcoming board meeting on September 5. Reliance Chairman Mukesh Ambani also revealed plans to introduce a range of AI tools and platforms, alongside boosting the company’s green energy manufacturing capabilities.

Other Market Movers

In addition to Reliance, non-banking lender Bajaj Finance and its holding company Bajaj Finserv saw gains of about 2.5%. This was spurred by reports suggesting that Bajaj Finance’s mortgage lending arm is likely to be listed in the first half of September.

Eight of the 13 major sectors logged gains, with financial services and IT—two of the heaviest sectors in the Nifty 50—rising by 0.25% and 0.5%, respectively.

Caution Advised in Small- and Mid-Caps

While the broader market saw gains, the small- and mid-cap segments underperformed, each falling by about 0.5%. Dasgupta cautioned investors to be wary of these segments, stating, “Investors should exercise caution in small- and mid-caps, where valuations are out-of-sync with fundamentals.”