June 12th 2024.
The stock market in Mumbai saw a positive trend on Wednesday, with the Nifty reaching a new record closing level. This was mainly due to an increase in the buying of power, capital goods, and industrial stocks, while global equities also showed a mostly positive trend. The heavy demand for index-heavyweight stocks such as HDFC Bank and Reliance Industries also contributed to the overall positive sentiment among investors, according to traders.
The BSE Sensex, which is a benchmark index of the Bombay Stock Exchange, experienced a highly volatile trading day, but managed to climb 149.98 points or 0.20 per cent to close at 76,606.57. At one point during the day, it even reached a high of 593.94 points or 0.77 per cent at 77,050.53. This puts the BSE just 28.51 points away from breaking its previous record high of 77,079.04.
The NSE Nifty, another benchmark index, also saw a significant increase, going up by 177.1 points or 0.76 per cent to reach an intra-day high of 23,441.95. It ended the day at a new closing peak of 23,322.95, showing a gain of 58.10 points or 0.25 per cent.
Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, explained that the market started off on a positive note and continued to climb throughout most of the day. Any dips in the market were quickly taken advantage of by investors looking to buy.
Among the top gainers on the Sensex chart were Power Grid, which saw a rise of 2.54 per cent, followed by Tech Mahindra, Bajaj Finance, NTPC, UltraTech Cement, Larsen & Toubro, Tata Steel, Bharti Airtel, Bajaj Finserv, and HCL Technologies. On the other hand, Mahindra & Mahindra, Hindustan Unilever, Infosys, and Titan were among the stocks that saw a decline.
The broader market also showed positive movement, with the BSE midcap index climbing 1.07 per cent and the smallcap index rising by 1.06 per cent. Among the various sectoral indices, industrials, power, capital goods, energy, commodities, healthcare, and metal were the biggest gainers. However, realty and FMCG showed a decline.
Vinod Nair, the Head of Research at Geojit Financial Services, pointed out that global markets remained largely positive, in anticipation of the upcoming US inflation data and FOMC meeting. The consensus is that there will be stable US inflation, but the potential rate cuts are of great importance for future market direction, especially since expectations of rate cuts have gone down from 3 to 2.
He also mentioned that the domestic market was trading at a new high, due to expectations of a growth-focused final budget, which were reinforced by the RBI's upgraded GDP growth forecast.
In Asian markets, Seoul and Shanghai ended the day in the positive territory, while Tokyo and Hong Kong saw a decline. During the mid-session deals, European markets were mostly trading with gains. US markets, on the other hand, ended the day with mostly positive movement.
The global oil benchmark, Brent crude, also saw an increase of 1.16 per cent to reach $82.87 a barrel. According to exchange data, Foreign Institutional Investors offloaded equities worth Rs 111.04 crore on Tuesday.
On Tuesday, the BSE benchmark Sensex saw a decline of 33.49 points or 0.04 per cent to close at 76,456.59. The Nifty, on the other hand, ended the day with a slight gain of 5.65 points or 0.02 per cent at 23,264.85, after experiencing a volatile trading day.
Ajit Mishra, the SVP of Research at Religare Broking Ltd. mentioned that for the third consecutive day, the market remained within a narrow range and ended with slight gains. He also noted that after three days of consolidation, the market is expected to react to the outcome of the US Fed meeting on Thursday, which could set the tone for the day.
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