Nifty, Sensex hit record highs for fifth consecutive session
What's the story
India's benchmark indices, Nifty and Sensex, have reached new heights for the fifth consecutive session today. This upward trend is influenced by positive signals from US and Asian markets. At around 9:50am, the Sensex had risen by 250 points or 0.30% to touch 82,616 while the Nifty had increased by 77 points or 0.30% to reach a new high of 25,333.
Expert opinion
Market trends and expert insights
Siddhartha Khemka from Motilal Oswal anticipates that the market will maintain its upward trajectory with stock-specific action. He also highlighted that global macro data set to be released this week will continue to guide domestic equities. The auto industry is in focus today due to the decline in monthly car sales reported by leading automakers. Nifty Auto was down 0.25%, while Tata Motors had fallen 1.37%. In contrast, two-wheeler brands like Hero MotoCorp and Bajaj Auto were up by 2.5%.
PSU performance
PSUs thrive after 'Navratna' status upgrade
Several Public Sector Undertakings (PSUs) including Railtel, SJVN, NHPC, and SEC have seen significant activity in trade following their elevation to 'Navratna' status by the Ministry of Finance on August 30. This status is awarded to government-owned companies previously classified under 'miniratna' category I, in recognition of their robust financial and market performance. The broader market also demonstrated strength with midcap and smallcap stocks each rising by 0.2%.
Market outlook
Market optimism and sector performance
Prashanth Tapse from Mehta Equities noted that the stage is set for substantial gains in the benchmark Nifty, driven by Wall Street's surge following signals of potential rate cuts in September. He also mentioned a 3.1% drop in WTI crude futures and strong Foreign Institutional Investors (FII) buying of ₹9,217 crore last week as factors fueling optimism on Dalal Street. On August 30, FIIs extended their buying spree with equities purchases worth ₹5,316 crore.
Sector performance
IT and energy sectors lead gains, metal stocks falter
In sector-specific performance, Nifty IT continued its winning streak for the fifth session in a row with Infosys, TCS, and HCL Tech leading the charge. Nifty Energy emerged as the top gainer with a 0.5% rise. However, metal stocks experienced a downturn after Adani Enterprises, JSW Steel, and Jindal Steel slipped in trade.