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Business News/ Markets / Stock Markets/  Nifty 50 touches new all-time high, extends gain for 5th day in a row
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Nifty 50 touches new all-time high, extends gain for 5th day in a row

Extending its winning streak for the fifth straight session, the Nifty 50, representing India's top 50 companies, soared to yet another all-time high of 22,186 points in today's session, surpassing its previous high of 22,124 touched on January 16.

In today's trading session, seven stocks, including Bajaj Auto, Adani Enterprises, Dr Reddy's Laboratories, Maruti Suzuki India, Adani Ports & Special Economic Zone, Wipro, and SBI Life Insurance Company, all reached new 52-week highs. (Mint)Premium
In today's trading session, seven stocks, including Bajaj Auto, Adani Enterprises, Dr Reddy's Laboratories, Maruti Suzuki India, Adani Ports & Special Economic Zone, Wipro, and SBI Life Insurance Company, all reached new 52-week highs. (Mint)

Extending its winning streak for the fifth straight session, the Nifty 50, representing India's top 50 companies, soared to yet another all-time high of 22,186 points in today's session, surpassing its previous high of 22,124 touched on January 16. The index finished today's trade above the 21,100 mark for the first time. 

Today's market rally propelled the combined market capitalization of NSE-listed companies past the $4.65 trillion milestone. Over the last four trading sessions, the index has recorded a nearly 2% increase. 

In today's trading session, seven stocks, including Bajaj Auto, Adani Enterprises, Dr Reddy's Laboratories, Maruti Suzuki India, Adani Ports & Special Economic Zone, Wipro, and SBI Life Insurance Company, all reached new 52-week highs.

Also Read: Indian stock market: Why Nifty 50 index may touch record high this week — explained with 5 reasons

Among the top gainers, Grasim Industries, Bajaj Finance, Bajaj Finserv, Bajaj Auto, Adani Enterprises, Bharti Airtel, ITC, Dr. Reddy's Laboratories, and ICICI Bank are all ended today's session with gains over 2%.

The State Bank of India emerged as the primary driver of the index surge in February, with significant contributions from other heavyweights including TCS, Reliance Industries, Coal India, M&M, and Infosys.

Analysts have been bullish on large-cap stocks given their underperformance when compared to mid- and small-cap counters. 

Also Read: RVNL shares surge 12% on expansion plans; eyes offshore projects in Central Asia and UAE

In the current month so far, the index has gained 410 points or 1.92%. Furthermore, the index has risen by 31.60% from its March 2023 low of 16,828. Comparing it to the COVID lows of 7,511, the index has delivered a remarkable multi-bagger return of 195%.

On the other hand, the Nifty Small Cap 100 index and the Nifty Midcap 100 index are both showing gains of over 0.60% and 0.70%, respectively, as of 11:45 a.m.

Although expectations for rate cuts from the US Federal Reserve have decreased due to higher-than-expected US consumer inflation in January, the markets are disregarding these concerns because of the prevailing importance of domestic factors.

Also Read: Is market correction on the horizon amid high valuations?

Factors such as robust domestic liquidity and anticipated political stability, particularly with the expectation of the BJP winning in the upcoming Lok Sabha elections in May, are currently favoring bullish sentiment.

In a recent note, domestic brokerage firm Kotak Institutional Equities highlighted that there are no immediate negative factors on the horizon that could prompt a significant correction in the market. 

The brokerage said that the large 'disconnect' between price and value may continue to persist if the BJP wins the upcoming national elections in May, as expected, and the market continues to ignore potential medium-term disruption risks. 

Earlier in January, American investment bank Goldman Sachs revised its year-end 2024 target for the benchmark Nifty50, increasing it from 21,800 to 23,500.

Technical Outlook

Rupak De, Senior Technical Analyst, LKP Securities, said, "Nifty has surpassed the swing high on the hourly chart, signaling an increase in optimism. Additionally, the consolidation observed in recent days has concluded with an upside breakout. The momentum indicator RSI is also suggesting a positive shift in momentum. The overall sentiment appears to position Nifty for a potential upward movement towards 22,500–22,600 in the short term. The immediate crucial support is situated at 22,000."

Disclaimer: We advise investors to check with certified experts before making any investment decisions. 

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Published: 19 Feb 2024, 11:34 AM IST
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