Nifty Nears Record High To Notch Best Rally In Over 16 Months: Midday Market Update
The Nifty 50 index was about 10 points shy of hitting a fresh record high as of 11:55 a.m., after reclaiming the 25,000 level in the previous session.
India's benchmark indices extended gains by midday on Tuesday, buoyed by financial service stocks, while technology stocks continued to rise on the US Federal Reserve Chair's dovish tilt last week.
The Nifty 50 index was about 10 points shy of hitting a fresh record high as of 11:55 a.m., after reclaiming the 25,000 level in the previous session.
As of 11:40 a.m., the NSE Nifty 50 was 52 points, or 0.2%, higher at 25,060, and the BSE Sensex was up 190 points, or 0.23%, at 81,888. Intraday, Nifty rose 0.25% to 25,073, and Sensex rose 0.27% to 81,919.
The information technology gauge, Nifty IT, rose for the second consecutive day after Jerome Powell said "time has come" for September rate cuts, boosting business prospects for domestic firms. The index closed 1.4% on Monday and rose as much as 0.66% during the session.
As long as 24,919–24,870 holds for Nifty, there are still hopes of a push towards our first objective of 25,075 or 25,150, said Anand James, chief market strategist at Geojit Financial Services.
If geopolitical tensions cause dips in the market, DIIs and retail investors are likely to buy that dip, according to VK Vijayakumar, chief investment strategist at Geojit Financial Services. "Financials, particularly banking and other rate-sensitive sectors like housing and automobiles, are the likely preferred sectors for institutional buying."
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Shares of Larsen & Toubro Ltd., ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., and Maruti Suzuki India Ltd. positively contributed to changes in the index.
While those of Reliance Industries Ltd., ITC Ltd., Hindustan Unilever Ltd., NTPC Ltd., and Tata Motors Ltd. weighed the index.
On NSE, 10 out of 12 sectors advanced with Nifty Realty and Media rising during the session. The FMCH index fell over 0.5% after hitting a fresh life high early in the day.
Broader markets outperformed the benchmark indices. The BSE Midcap and Smallcap indices were trading 0.44% and 0.55% higher, respectively.
On BSE, 17 out of 20 sectors advanced, with the BSE Capital Goods rising the most. BSE FMCG and Metal were the top losers in trade.
Market breadth was skewed in the favour of buyers. Around 2,283 stocks rose, 1,458 stocks declined, and 143 stocks remained unchanged on BSE.
