Stock market today: Sensex, Nifty 50 hit record high after PM Narendra Modi takes oath as PM

Indian stock market hit record high in early trade on Monday, with the benchmark Sensex rising above 77,000 and the Nifty 50 scaling above 23,400, amid upbeat sentiment. The positive momentum in the domestic equity market came after Narendra Modi took oath as India’s Prime Minister for a third consecutive time on Sunday. 

The BSE Sensex hit a record high of 77,079.04, while NSE Nifty 50 touched a life-time high of 23,411.90 soon after the market opening on June 10. Gains in index heavyweights such as Reliance Industries, Ultratech Cement, Grasim Industries, and Cipla supported the rally.

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Buying was also witnessed in the broader markets as the Nifty Midcap 100 and the Nifty Smallcap 100 index traded higher. 

Among sectors, Nifty PSU Bank, Nifty Realty, Nifty Oil & Gas, Nifty Pharma and Nifty Auto led the gains, while Nifty IT was trading in the red.

Market sentiment improved as concerns over political stability and policy continuity waned after the new government led by Prime Minister Narendra Modi was sworn in over the weekend. On Sunday, Narendra Modi took oath as the Prime Minister of India for the third consecutive term. Along with him, 71 ministers in the new coalition government were also administered the oath of secrecy and office by President Droupadi Murmu.

Read here: Amit Shah, JP Nadda, Shivraj Singh Chouhan, among 71 ministers sworn in. Find full list here

Indian stock market participants will now watch the composition of the council of ministers in the new NDA government, key global and domestic factors including the US Federal Reserve policy outcome, Bank of Japan interest rate decision and India and US inflation data this week for further cues on the direction of the markets.

On Friday, Sensex and Nifty 50 saw a stellar rally of over 2% each after the Reserve Bank of India (RBI) policy. The RBI’s Monetary Policy Committee (MPC) kept the repo rate and policy stance unchanged and raised India’s GDP estimates for FY25, while retaining the inflation target.

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Technical Outlook

The increased writing of the put open interest (OI) at 23,000 levels and the increased wiring of the calls OI at 23,500 levels indicates range bound movement in the index for this week, noted Rahul Ghose, CEO of Hedged.in.

“In Nifty, the pivot level is trading at 23,133, the buy zone for Nifty is trading at 23,060 to 23,135, the extreme low buy shall be in the range of 22,810 to 23,045. The sell zone for Nifty is at 23,445 to 23,520, if there is any breakout on the index beyond this level, the Nifty may test the extreme high at 23,770,” Ghose said.

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