Indian Stock Market Hits Record High with Nifty and Sensex

The Indian stock market soared to a new high as Nifty and Sensex reached unprecedented levels. The rally was fueled by consistent US Federal Reserve policies and robust domestic economic indicators. Key performers included Power Grid Corp and Coal India, while sectors like Media and Realty lagged.

The Indian stock market achieved a new milestone on Thursday, with both the Nifty and Sensex indices reaching record highs. This leap was supported by the US Federal Reserve's decision to keep interest rates unchanged for the eighth consecutive session. The Nifty closed at 25,004.00, an increase of 52.85 points or 0.21 percent, while the Sensex closed at 81,867.73, up 126.38 points or 0.15 percent.

The Nifty's rise past the 25,000 mark is particularly significant, marking a 1,000-point rally in just 24 trading sessions, the third-fastest in its history. Over the past three months, the index has seen an approximate gain of 11 percent, driven by robust GDP growth, controlled inflation, strong domestic liquidity, and favorable monsoon conditions. Power Grid Corp, Coal India, ONGC, Dr Reddy's Lab, and Shriram Finance were the top gainers in Thursday's trade.

Conversely, Mahindra & Mahindra, Tata Steel, Hero Moto Corp, State Bank of India, and Bajaj Finserv were the main laggards. The market was also influenced by U.S. Federal Reserve Chair Jerome Powell's hints at a possible rate cut in September. Additionally, India's manufacturing sector showed impressive resilience in July 2024 with the HSBC India Manufacturing PMI at a robust 58.1.

"Geopolitical tensions and a 4 percent surge in WTI crude oil prices, driven by Middle East conflicts, also influenced market dynamics," said Varun Aggarwal, MD of Profit Idea. In the broader market, the BSE MidCap index declined by 0.7 percent, and the SmallCap index fell by 0.5 percent. Sector-wise, the Nifty Media and Realty indices were the worst performers, decreasing by 0.88 percent and 1.37 percent, respectively, while the Nifty Bank index rose by 0.3 percent.

"Currently, the index is trading in an overbought condition, as evident from its RSI readings above 75 on daily, weekly, and monthly timeframes. Additionally, there is a price deviation on the daily and weekly timeframes, as per the 20-day and 50-day EMA. Those looking to trade in this market condition are advised to maintain a neutral stance," said V.L.A. Ambala, Co-founder of Stock Market Today (SMT).

"Based on current market momentum, Nifty could find support between the 24,940 and 24,860 levels and face some resistance around 25,085 and 25,130 in the next session," she added. (ANI)

(With inputs from agencies.)