Indian Stock Market Hits Record High: Nifty and Sensex Soar
The Indian stock market achieved a new milestone, with both Nifty and Sensex reaching record highs. The markets were supported by the US Federal Reserve’s decision to keep interest rates unchanged for the eighth straight time.
Market Performance
The Nifty closed at 25,004.00, up by 52.85 points or 0.21%, and Sensex closed at 81,867.73, a rise of 126.38 points or 0.15%. The Nifty’s ascent past the 25,000 mark marked a significant achievement, completing a 1,000-point rally in just 24 trading sessions, the third-fastest in its history. The index has gained approximately 11% over the past three months, driven by robust GDP growth, controlled inflation, strong domestic liquidity, and favorable monsoon conditions.
Top Gainers and Laggards
The stocks of Power Grid Corp, Coal India, ONGC, Dr. Reddy’s Lab, and Shriram Finance were the top gainers during the day’s trade. On the other hand, Mahindra & Mahindra, Tata Steel, Hero Moto Corp, State Bank of India, and Bajaj Finserv were the main laggards.
Expert Insights
According to experts, the market was also influenced by the U.S. Federal Reserve Chair Jerome Powell’s decision of a possible rate cut in September. The market also saw the news of India’s manufacturing sector demonstrating impressive resilience in July 2024, as indicated by the HSBC India Manufacturing PMI report, which recorded a strong reading of 58.1 in July.
“Geopolitical tensions and a 4% surge in WTI crude oil prices, driven by Middle East conflicts, also influenced market dynamics,” said Varun Aggarwal, MD of Profit Idea.
Broader Market and Sector Performance
In the broader market, the BSE MidCap index declined by 0.7%, and the SmallCap index fell by 0.5%. Sector-wise, the Nifty Media and Realty indices were the worst performers, decreasing by 0.88% and 1.37%, respectively, while the Nifty Bank index rose by 0.3%.
Trading Advice
“Currently, the index is trading in an overbought condition, as seen from its RSI readings, which are above 75 on daily, weekly, and monthly timeframes. In addition, there is a price deviation on the daily and weekly timeframes, as per the 20-day and 50-day EMA. Those willing to trade in this current market condition are advised to follow a neutral view,” said V.L.A. Ambala, Co-founder of Stock Market Today (SMT).
“Based on the current market momentum, we could expect Nifty to gain 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.
Doubts Revealed
Nifty -: Nifty is a stock market index in India. It shows how the top 50 companies listed on the National Stock Exchange (NSE) are performing.
Sensex -: Sensex is another stock market index in India. It tracks the performance of the top 30 companies listed on the Bombay Stock Exchange (BSE).
US Federal Reserve -: The US Federal Reserve is like a big bank for the United States. It helps control the country’s money and interest rates.
interest rates -: Interest rates are like the cost of borrowing money. If the rates are low, it’s cheaper to borrow money, and if they are high, it’s more expensive.
Power Grid Corp -: Power Grid Corporation of India is a company that helps deliver electricity across India.
Coal India -: Coal India is a company that mines and sells coal, which is used for energy and other purposes.
Mahindra & Mahindra -: Mahindra & Mahindra is a big company in India that makes cars, tractors, and other vehicles.
Tata Steel -: Tata Steel is a company in India that makes steel, which is used to build things like buildings and cars.
geopolitical tensions -: Geopolitical tensions are problems between countries that can affect things like trade and the economy.
crude oil prices -: Crude oil prices are the cost of oil before it is made into things like petrol and diesel. High prices can make many things more expensive.
overbought -: Overbought means that a lot of people have bought stocks, and the prices might be too high. It can be risky to buy more at this time.
neutral view -: A neutral view means not buying or selling stocks right now. It’s like waiting to see what happens next.
