Sensex tops 64K, Nifty touches 19K mark
After multiple attempts, the domestic market successfully managed to sustain record high levels, thanks to the increased buying interest in heavyweight stocks.
NEW DELHI: Led by firm global cues, a huge flow of foreign investment and heavy buying across financial stocks, especially in the HDFC twins, Indian equity market benchmark indices scaled fresh lifetime highs. BSE Sensex and NSE Nifty50 touched highs of 64,050 and 19,011, respectively, in Wednesday’s intra-day trade.
Sensex closed the Wednesday session at 63,915, up 499 points or 0.79% while Nifty settled at nearly 18,972, up 155 points or 0.82%.
This is the first time that the 30-share index Sensex has touched the 64,000 mark and Nifty topped the 19,000 level. So far in CY2023, the two indices have gained between 4-5% but in the last three months, they have rallied about 12%.
“After multiple attempts, the domestic market successfully managed to sustain record high levels, thanks to the increased buying interest in heavyweight stocks. The bullish momentum was further supported by strong foreign institutional investors (FII) inflows and a narrowing current account deficit, positively impacted investor sentiments,” said Vinod Nair, head of research at Geojit Financial Services.
The local equity market witnessed an enormous FII inflow (net) of `12,350 crores on Wednesday. Naveen Kulkarni, chief investment officer, Axis Securities PMS, “Nifty50 is at an all-time high, led by solid flows from both domestic institutional investors and foreign portfolio investors and strong fundamentals where we expect the Nifty50 earnings to grow at 15% CAGR for the next two years.
The announcement of a tentative effective merger date of 1st July for HDFC Bank – HDFC Ltd has also added to buoyancy in the current market.” Santosh Meena, head of research, Swastika Investmart, said the current market sentiment indicates a sustained structural bull run, making it difficult to assign an immediate target to this upward trend.
“However, it is worth noting that the levels around 19,000–19,191 could potentially serve as a resistance area, which might trigger profit booking from higher levels. Conversely, on the downside,” said Meena. Broader markets, too, witnessed buying on Wednesday with Nifty Midcap 100, and Nifty Smallcap 100 indices closing with decent gains.
Besides HDFC Bank and HDFC, buying interest was seen in select heavyweights such as Reliance Industries (RIL), Infosys and Tata Consultancy Services (TCS). An uptick in most Adani Group stocks, with Adani Enterprises and Adani Ports gaining about 5-6% each, also helped the Nifty index. Going forward, global brokerage firm CLSA said they remain cautious for now, given exceedingly rich valuations, margin erosion depleting India’s relative profitability and consensus earnings growth expectations remaining too optimistic against the delivered track record.
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