Stock market today: Sensex, Nifty 50 open at record high; midcap, smallcap indices follow
- Sensex surged over 500 points to trade above 77,100 level, while the Nifty 50 rallied more than half a percent to around 23,480. Bank Nifty index rose 115 points to trade above 50,000-mark.
Indian stock market opened at record high on Thursday led by strong buying across the board amid positive global market cues. The benchmark indices, Sensex surged over 500 points to trade above 77,100 level, while the Nifty 50 rallied more than half a percent to around 23,480.
Broader markets supported the rally as the Nifty Midcap 100 and the Nifty Smallcap 100 indices gained over half a percent each and touched their life-time high levels. Bank Nifty index rose 115 points to trade above 50,000-mark.
Among sectors, Nifty IT, Nifty Realty, Nifty Metals, Nifty Auto, Nifty PSU Bank and Nifty Financial Services led the gains, while Nifty FMCG and Nifty Media were the only indices to trade in the red.
HDFC Life Insurance, LTI Mindtree, Divi’s Laboratories, Shriram Finance and Wipro were the top gainers on the Nifty 50 constituents, while Tata Consumer Products, Britannia Industries, Hindustan Unilever, Cipla and Eicher Motors were the top losers.
Positive global cues and favourable domestic economic data led the rally in the Indian stock market. The domestic equities followed an upmove in Asian markets and US stock market after softer than expected US inflation data and the US Federal Reserve policy decision.
The US consumer price index (CPI) came in at 3.3% in May, down 0.1 percentage point from April’s 3.4%.
Meanwhile, the US Federal Reserve kept its benchmark interest rate unchanged for the seventh straight meeting on Wednesday and said that “modest” progress had been made toward its long-term inflation target of 2%. The Fed Chair Jerome Powell-led Federal Open Market Committee (FOMC) officials signaled that they expect to cut their benchmark interest rate just once this year.
On the domestic front, India’s retail inflation based on the consumer price index (CPI) fell to 4.75% in May from 4.83% in April, touching the lowest in a year.
India’s factory output rose 5% in April from 4.9% in March and 5.6% in February.
“There is good news on the inflation front, both in the US and in India. In US May CPI inflation has declined slightly less-than-expected to 3.3% with MoM inflation remaining flat. However the economy continues to remain strong and there are no clear signs of labour market loosening. Therefore, the Fed chief Jerome Powell has kept rates unchanged and has hinted at only 1 rate cut in 2024 and possibly 4 rate cuts in 2025,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In India May CPI inflation has declined to 4.75% and core inflation has come at only 3.1%. This paves the way for a rate cut by the MPC in October. The takeaway from the inflation numbers is that the disinflation process is well on track. From the market perspective, this is positive news, particularly for banking stocks, he added.
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