Nifty, Sensex hit record highs; PSU banks, metal stocks lead
What's the story
India's benchmark indices, Nifty and Sensex, hit record highs in early trade today.
At the opening bell, the Sensex had risen by 195 points to reach 77,187 while the Nifty was up by 69 points at 23,534.
This surge is expected to continue as long as the market stays above 23,200-76,300 (Nifty and Sensex), according to market analysts.
The top gainers included the metal stocks index, PSU banks index, and IT index while healthcare and pharma sectoral indices lagged behind.
Market analysis
Market consolidation gives way to positive territory
Kranthi Bathini, director of equity research at WealthMills Securities, commented on the market's performance.
"We witnessed consolidation last week but the market is likely to remain higher on as we're in a positive territory on the back of election results and hopes of policy continuity," he said.
Bathini also highlighted that the upcoming government budgetary action will be a significant trigger for the markets.
Market trends
Midcap, smallcap indices start strong; Bathini optimistic
The midcap and smallcap index also started strong with increases of 0.3% and 0.8% respectively.
Out of the 13 sectoral indices on NSE, only three were trading in the red.
Bathini further noted that due to the positive market trend, mid-cap and small-cap stocks are likely to outperform major indices.
However, he clarified that this outperformance would largely be driven by individual stock performance rather than specific sectors.
Expert agreement
Kotak Securities echoes Bathini's market sentiments
Shrikant Chouhan, head of equity research at Kotak Securities, echoed Bathini's sentiments.
"While some profit booking was seen last week, the market seems to be undergoing positive consolidation and as long as it stays above 23,200-76,300 (Nifty and Sensex), the bullish sentiment is likely to persist," he stated.
Wipro, Adani Enterprises, M&M, Titan Company and Adani Ports emerged as the top gainers on Nifty.
Maruti Suzuki, Dr Reddy's, Divis Laboratories, and Kotak Mahindra Bank were among the laggards.