On Thursday, the stock market opened lower, mainly due to a decline in financial services and banking stocks. This dip came after the market had closed at record highs in the previous session.
Sensex and Nifty’s New Milestones
The Sensex, a key stock market index in India, crossed the 79,000 mark, while the Nifty 50 index went beyond 23,900. This rise was mainly driven by a rally in bank stocks, marking a four-day streak of gains coinciding with the monthly futures and options (F&O) expiry.
Market experts are optimistic about this upward trend, they believe that the benchmark indices will continue to reach new records. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “The market will remain bullish in the near-term despite the valuation concerns, and the ongoing momentum has the potential to take the Sensex to 80,000 levels. A healthy trend in the market is that now the up move is being led by fundamentally strong large caps in sectors like banking and telecom.”
As of 10:15 AM, the S&P BSE Sensex had added 255 points, reaching 78,930, while the NSE Nifty50 gained 69 points, standing at 23,938. Major stocks such as Reliance Industries, Bajaj Twins, and HDFC Bank were among those driving the market.
Vijayakumar noted that Reliance Industries Limited (RIL), which had not participated in the rally until yesterday, has now joined the bullish trend. This could help the rally continue. However, he warned that a rise in U.S. bond yields might lead to significant selling by Foreign Institutional Investors (FIIs) in the coming days, which could slow down the rally.
Nonetheless, he pointed out that as long as there is strong domestic liquidity support, there are no major triggers that could cause a sharp market correction. He also mentioned that Public Sector Unit (PSU) banks look attractive from a valuation perspective and might react positively to good Q1 results.
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UltraTech Cement Ltd saw a significant jump, with its shares rising by 5.92% to trade at Rs 11,802.40. Dr. Reddy’s Laboratories Ltd shares gained 1.51%, while steel stocks like JSW Steel Limited and Tata Steel increased by 1.13% and 0.89%, respectively.
However, IT stocks experienced a fall in early trade, shares of TCS, Tech Mahindra Ltd, and HCL Technologies Ltd were down by 0.81%, 0.75%, and 0.74%, respectively.
Overall, while there are some concerns about potential corrections due to external factors like U.S. bond yields, the strong domestic liquidity and performance of large-cap stocks in key sectors are expected to keep the market bullish in the near term.
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