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Business News/ Markets / Stock Markets/  Nifty 50, Sensex hit fresh all-time high; why did Indian stock market gain today?- Explained
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Nifty 50, Sensex hit fresh all-time high; why did Indian stock market gain today?- Explained

Stock market today: Indian stock market benchmarks the Sensex and the Nifty 50 hit their fresh all-time highs in intraday trade on Tuesday.

Stock market today: Sensex, Nifty hit their fresh all-time highs on Tuesday. Photographer: Robert Caplin/Bloomberg News. (Bloomberg)Premium
Stock market today: Sensex, Nifty hit their fresh all-time highs on Tuesday. Photographer: Robert Caplin/Bloomberg News. (Bloomberg)

Stock market today: Indian stock market benchmarks the Sensex and the Nifty 50 hit their fresh all-time highs in intraday trade on Monday, April 1, amid across-the-board buying despite mixed global cues.

Nifty 50 opened at 22,455, up 128 points against the previous close of 22,326.90 and rose about 2023 points to hit its fresh record high of 22,529.95 during the session. The index finally closed the day at 22,462, up 135 points, or 0.61 per cent.

Sensex opened 317 points higher at 73,968.62 against its previous close of 73,651.35 and jumped as much as 603 points to hit its fresh all-time high of 74,254.62. The Sensex ended the day with a gain of 363 points, or 0.49 per cent, at 74,014.55.

Mid and smallcap indices clocked robust gains. The BSE Midcap index rose 1.64 per cent while the Smallcap index jumped 2.98 per cent.

The overall market capitalisation (mcap) of BSE-listed firms rose to nearly 393.2 lakh crore from nearly 387 lakh crore in the previous session, making investors richer by nearly 6.2 lakh crore in a single session.

Why did the Indian stock market gain today?

Experts point out that the undercurrent of the market is positive due to the strong prospects of the Indian economy. Moreover, expectations of rate cuts starting in the coming months are also underpinning market sentiment. Investors are buying Indian stocks after the recent correction as they remain positive about the Indian stock market for the medium to long term.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services underscored that the undertone of the market is bullish and there is momentum in the market.

"The market has been showing signs of consolidation but the spurt in Nifty by 322 points on the last 2two trading days indicates that the upward momentum can be sustained," said Vijayakumar.

Vijayakumar highlighted that some mutual funds are reported to have started restricting redemptions from the smallcap schemes due to concerns over frothy valuation in this segment which could result in higher flows of funds into the largecaps. This would lift the large caps.

According to brokerage firm ICICI Direct, the Nifty 50 may continue to trade with a positive bias and immediate support for the index can be near 22,000.

The brokerage firm expects the index to endure its northbound journey and gradually head towards 22,700 in the coming weeks.

"Empirically, in General Election year, the index has a tendency to bottom out in the first quarter of the calendar year, followed by a rally (minimum 14 per cent rally from lows) towards the General Election outcome in each of seven instances over past three decades," said ICICI Direct.

"In the current scenario, we expect the index to maintain the same rhythm as the index has already undergone a corrective phase in the first quarter and formed a higher base. Thereby, setting the stage for the next leg of a bull rally towards 23,400 by the election outcome. In the process, 21,900 would act as immediate support which we expect to hold," said the brokerage firm.

The Sensex and the Nifty 50 witnessed impressive gains of 29 per cent and 25 per cent, respectively, in the last financial year (FY24). Experts are optimistic that these indices could continue to record robust growth in the new financial year, despite ongoing challenges.

Also Read: FY25 Outlook: Can Nifty 50 repeat the feat of FY24? 5 crucial challenges that loom

“Considering the consistent earnings growth and an easing interest rate environment, the Nifty 50 may deliver a healthy double-digit return in the low to mid-teens," Naveen Kulkarni, Chief Investment Officer at Axis Securities PMS, told Mint.

Also Read: Expert view: Nifty 50 may give a double-digit return in FY25: Naveen Kulkarni of Axis Securities PMS

Niraj Kumar, Chief Investment Officer at Future Generali India Life Insurance Company expects FY25 to be driven by sustained corporate earnings growth, policy continuity and a favourable geopolitical landscape and any disappointment on these fronts may have negative ramifications on the market.

Also Read: Expert view: Corporate earnings growth, geopolitical stability key triggers for FY25, says Niraj Kumar

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 01 Apr 2024, 11:17 AM IST
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