Amid global optimism, Sensex and Nifty hit record highs, with Sensex surpassing the 85,000 mark at 85,001.42 and NSE reaching an all-time high of 25,975 points on Tuesday. The market initially opened flat but quickly surged, driven by positive global sentiment.
Market expert Ajay Bagga noted that while the Indian market outlook was positive, volatility would remain high due to the upcoming month-end and quarter-end derivatives expiry. He pointed out that the firm US dollar and increased gold buying, due to geopolitical tensions in West Asia, were influencing market conditions. Bagga also mentioned that global rate cuts, including those from China, could steer the Indian market in line with international trends.
“China’s central bank announced rate cuts, bank reserve reductions, and stimulus measures to revive its property market and economy. As a result, Hong Kong and Chinese shares are rallying. US markets also saw gains as Federal Reserve officials supported future rate cuts. Meanwhile, geopolitical tensions are escalating with Israel’s attacks on Hezbollah units in Lebanon, and the Eurozone posted weak growth numbers,” said Bagga.
At the National Stock Exchange (NSE), sectors including Banking, Auto, Financial Services, Media, Metal, Pharma, Healthcare, Consumer Durables, and Oil and Gas opened in positive territory. However, Financial Services, FMCG, IT, PSU Banks, Private Banks, and Realty sectors saw declines.
Top gainers in early trading included Tata Steel, JSW Steel, Hindalco, Power Grid, and Nestle India, while Infosys, Bajaj Finance, Wipro, Hindustan Unilever, and Divis Labs were among the top losers.
Despite the market reaching new highs, Varun Aggarwal, MD of Profit Idea, noted that there were no signs of reversal or fatigue. “The pattern of higher highs and higher lows is still intact, suggesting the index may aim for a target of 26,250, aligned with the 1.618% Fibonacci extension. Market sentiment remains optimistic, with upward movement towards 26,200 expected in the near term, while key support is seen around the 21-EMA at 25,700,” he added.
