ICICI Bank, Bharti Airtel, NTPC—Over 240 shares jump to 1-year peaks; Sensex, Nifty 50 hit record highs

Stocks at record high: As many as 241 stocks, including ICICI Bank, Bharti Airtel, NTPC and Britannia Industries, hit their fresh 52-week highs in intraday trade on BSE on Thursday, September 19, amid positive global cues after the US Fed cut interest rates by 50 bps and signalled more rate cuts were coming.

Shares of Cholamandalam Investment and Finance Company, LTIMindtree, Max Healthcare Institute, Info Edge (Naukri), Shriram Finance, and United Spirits were also among those that rose to their one-year peaks.

Markets in Europe and Asia recorded healthy gains as investors cheered the start of the US rate-cut cycle.

For emerging markets like India, Fed rate cuts trigger an inflow of foreign capital, which bodes well for the market.

Key equity indices the Sensex and the Nifty 50 hit their fresh all-time highs but closed with mild gains on profit-booking.

The Sensex jumped to its record high of 83,773.61 before ending at 83,184.80 with a gain of 237 points, or 0.29 per cent. The Nifty 50 rose to its fresh high of 25,611.95 but settled 38 points, or 0.15 per cent, higher at 25,415.80.

On the other hand, the BSE Midcap and Smallcap indices dropped 0.53 per cent and 1.06 per cent, respectively, as investors booked profits amid concerns over rich valuations.

Due to the fall in the mid and small-cap segment and small gains in the Sensex, the overall market capitalisation of the firms listed on the BSE dropped to nearly ₹465.7 lakh crore from ₹467.7 lakh crore in the previous session, making investors poorer by about ₹2 lakh crore on Thursday.

HDFC Bank, Kotak Mahindra Bank, NTPC, Reliance Industries, and Bharti Airtel were the top contributors to the Sensex's gains. However, losses in heavyweight stocks like Larsen & Toubro, TCS, and HCL Tech limited the overall rise of the benchmark index.

"The benchmark indices concluded with a minor gain after hitting record highs after the US Fed's more than expected interest rate cut of 50 bps and hinted for further reduction. The substantial rate cut sparked concerns over a global slowdown, resulting in profit booking in mid and small-cap trading at a premium valuation. Meanwhile, domestic heavyweight sectors like banking and FMCG saw buying interest, driven by foreign inflows and the RBI's monetary easing expected in October," said Vinod Nair, Head of Research, Geojit Financial Services.

On the technical front, Shrikant Chouhan, the head of equity research at Kotak Securities, believes the market's larger texture is still positive, but a fresh uptrend rally is possible only after the dismissal of 25,500/83,500.

"Above 25,500/83,500, the market benchmarks could retest the level of 25,600/83,770. Further upside may also continue, lifting the indices to 25,675/84,000. On the other hand, below 25,500/83,500, they could slip to 25,300-25,285/82,900-82,700," said Chouhan.

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