Nifty 50, Sensex hit high; What drove Indian stock market rise today?

Today in the stock market, Indian benchmarks Sensex and Nifty 50 reached new all-time highs during Tuesday’s intraday trade.

Today in the stock market update, both Indian stock market benchmarks, the Sensex and the Nifty 50, surged to achieve their fresh all-time highs during intraday trade on Monday, April 1. This upward trajectory was observed despite a mix of global cues, as investors engaged in widespread buying activities across various sectors.

The Nifty 50 started the day at 22,455, marking a 128-point increase from the previous close of 22,326.90. It surged by approximately 2023 points, reaching a new all-time high of 22,529.95 within the session. The index concluded the day at 22,462, up by 135 points, equivalent to a 0.61% rise.

The Sensex surged 317 points at the opening to reach 73,968.62, surpassing the previous close of 73,651.35. It later soared by 603 points, setting a new all-time high at 74,254.62. The day concluded with the Sensex marking an increase of 363 points, equivalent to 0.49%, closing at 74,014.55.

Mid and small-cap indices saw strong growth. The BSE Midcap index surged by 1.64%, with the Smallcap index leaping by 2.98%. The total market capitalization of BSE-listed companies increased to around ₹393.2 lakh crore from almost ₹387 lakh crore in the prior session, boosting investors’ wealth by approximately ₹6.2 lakh crore in just one session.

Why did the Indian stock market gain today?

Experts highlight the market’s positive undercurrent, driven by India’s robust economic outlook. Anticipation of forthcoming rate cuts is bolstering market sentiment. Investors are seizing the opportunity to buy Indian stocks post the recent correction, displaying confidence in the market’s medium to long-term potential.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasizes the market’s bullish undertone and the prevailing momentum.

“The market has hinted at consolidation, yet the recent 322-point surge in Nifty over the last two trading days suggests a potential sustainability of the upward momentum,” Vijayakumar commented.

Vijayakumar pointed out that certain mutual funds have begun limiting redemptions from small-cap schemes due to worries about inflated valuations in this sector. This concern could lead to increased fund inflows into large caps, thereby boosting their performance.

As per ICICI Direct brokerage, the Nifty 50 is likely to maintain a positive trend, with initial support around 22,000. The firm foresees the index continuing its upward trajectory and progressing towards 22,700 over the upcoming weeks.

“In General Election years, historically, the index tends to reach its lowest point in the first quarter of the calendar year. This is usually followed by a rally, with a minimum increase of 14 percent from its lows leading up to the General Election results. This pattern has been observed in seven instances over the past three decades,” as stated by ICICI Direct.

“In the present circumstances, we anticipate the index to continue its momentum, having already experienced a corrective phase in the first quarter and established a stronger base. This paves the way for the upcoming bullish rally aiming for 23,400 after the election results. During this progression, we foresee 21,900 serving as a crucial support level that we anticipate will remain intact,” stated the brokerage company.

Also Cheak: https://g.co/finance/NIFTY_50:INDEXNSE

The Sensex and Nifty 50 saw significant increases of 29% and 25%, respectively, in the previous financial year (FY24). Analysts hold a positive outlook, suggesting the potential for continued strong growth in the upcoming financial year, despite prevailing obstacles.

Niraj Kumar, CIO at Future Generali India Life Insurance, anticipates FY25 success driven by corporate earnings growth, policy stability, and a positive geopolitical landscape. Potential disappointments could impact the market negatively.

Disclaimer: The opinions and suggestions expressed here belong to individual analysts, experts, and brokerage firms, and do not represent Mint’s views. We recommend investors consult certified experts before making investment choices.

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