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Business News/ Markets / Stock Markets/  Stock market today: Sensex surges over 900 points, Nifty 50 settles above 21,100 led by IT, realty stocks
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Stock market today: Sensex surges over 900 points, Nifty 50 settles above 21,100 led by IT, realty stocks

Sensex and Nifty 50 reach new all-time highs after global rally sparked by US Federal Reserve signalling end of tightening cycle and possible rate cut in March 2024.

The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia. It is located at Dalal Street, Mumbai, India. The Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed with the stock exchange, and has a significant trading volume. As of July 2007, the equity market capitalization of the companies listed on the BSE was US $ 1.005 trillion. Premium
The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia. It is located at Dalal Street, Mumbai, India. The Bombay Stock Exchange was established in 1875. There are around 4,800 Indian companies listed with the stock exchange, and has a significant trading volume. As of July 2007, the equity market capitalization of the companies listed on the BSE was US $ 1.005 trillion.

Stock market today: The domestic benchmark indices, the Sensex and the Nifty 50, ended higher on Thursday's trading session and touched new all-time highs after the global rally that swept across regional markets after the US Federal Reserve signalled the end of its tightening cycle and raised expectations of a rate cut in March 2024. 

The 30-share BSE Sensex ended higher by 929.60 points or 1.34% at 70,514.20 level while the Nifty 50 closed at 21,182.70 level, up 256.35 points or 1.23%. Sensex surpassed the 70,600 mark in intraday trading, while Nifty 50 crossed the 21,200 mark.

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"The market continued its exuberance and hit a fresh high amid the dovish commentary from the Federal Reserve, signalling at least three rate cuts in 2024. Further, the sharp fall in US bond yields improved investors’ confidence. An upgrade in India’s GDP forecast, ease in global oil prices, and the RBI decision to clamp down inflation to the target level, led to a broad-based rally with outperformance from Realty and IT," said Vinod Nair, Head of Research at Geojit Financial Services.

Also Read: Rupee ends 7 paise higher at 83.33 against the US dollar on a dovish Federal Reserve

On the broader market front, the Nifty Midcap 100 touched record high level, and surpassed 45,500 level, and closed up 1.27% at 45,516.55 level, and the Nifty Smallcap 100 ended 0.81% higher.

As per the AFP news report, the US Federal Reserve's announcement that it will start reducing interest rates next year led to a rally in Asian markets on Thursday, while the dollar continued its downward trend. The surge in the region coincided with a record-breaking day on Wall Street, as traders celebrated the central bank's much-anticipated dovish turn as inflation declines.

The Shanghai Composite index fell 0.33% to 2,958.99, while the Hang Seng in Hong Kong rose 1.07% to 16,402.19. The Kospi of South Korea rose 1.34% to 2,544.18. In Australia, the S&P/ASX 200 was up 1.65% at 7,377.90. Bangkok's SET rose 1.54% while Taiwan's Taiex dropped by 0.66%.

Top Nifty 50 gainers and losers today

As many as 38 stocks settled in the green in the Nifty 50 index while the rest 12 ended in red.

Shares of Infosys Ltd (up 3.93%), Tech Mahindra Ltd (up 3.67%), LTIMindtree Ltd (up 3.54%), Wipro Ltd (up 3.42%) and HCL Technologies Ltd (up 3.24%) ended as top gainers. On the other side, Power Grid Corporation of India Ltd (down 1.90%), HDFC Life Insurance Co Ltd (down 1.75%), Nestle India Ltd (down 0.98%), Cipla Ltd (down 0.95%), and JSW Steel Ltd (down 0.63%) were among the laggards.

Also Read: Market Highlights: Indices end at record highs on dovish Fed; Sensex jumps 930 points led by IT stocks

Sectoral indices today

Nifty IT and Nifty Realty led the sectoral index gains, rising 3.50% and 3.88%, respectively, while Nifty Bank, Nifty Auto, and Nifty Oil & Gas saw 1% to 2% rise.

On the other side, Nifty Media,and Nifty Consumer Durable ended in red. 

Experts' Views on Markets

Analysts claimed that the Indian equities market is experiencing a Goldilocks situation due to a combination of both domestic and global factors. Bullish momentum has been fuelled by persistent political stability, a strong macroeconomic environment with strong GDP growth and low inflation, and declining dollar and US bond yields amid expectations of a rate cut in 2024.

 Investor confidence has also increased as a result of the recent decline in crude oil prices, which has also lessened inflation pressure. Foreign institutional investors (FIIs), keen not to miss out on this possible multi-year bull run, are showing signs of FOMO, which is fueling the fire. Given this powerful combination of circumstances, investors are encouraged to maintain their position.

“The Indian market looks poised for further gains, with Nifty's immediate upside target sitting at 21,315. This rally has the potential to extend towards the 22,000 mark, though downside support lies at 20,770. Bank Nifty also exhibits bullish momentum, facing immediate resistance at 48,000. Above this, a swift climb towards the 50,000 mark could be in store. The 47,000–46,800 area will be a strong support zone," said Parth Nyati, Founder of Tradingo.

Also Read: Nifty, Sensex at record high, investors gain 3.4 lakh crore on US Fed policy; rate sensitives jump

Technical Views

"The index has broken out of consolidation, driven by an increase in long positions compared to short trades among participants. Sentiment remains robust as the index maintains a position comfortably above crucial moving averages. Support is situated at 21,000, where Put writers have significant position. Looking ahead, there's a potential for the index to advance towards 21,400 and beyond on the higher side," said Rupak De, Senior Technical analyst at LKP Securities.

According to Kunal Shah, Senior Technical & Derivative analyst at LKP Securities, the Bank Nifty bulls maintained their momentum, successfully surpassing the key resistance level of 47,500 with significant trading volumes.

 The overall market sentiment remains bullish, and any temporary declines are considered buying opportunities, with a strong support level identified at 47,000. The ongoing momentum is expected to be driven by active participation from both private and PSU banks, propelling the Bank Nifty index towards the 50,000 mark.

Also Read: Gold price trades flat ahead of US Fed meeting outcome. Buy, sell or hold?

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: 14 Dec 2023, 03:31 PM IST
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