Indian Stock Market Hits New Highs: Sensex and Nifty Soar Amid Global Rate Cuts
Stock indices in India continued to rally, reaching new highs on Tuesday. The Sensex breached 85,000 and the Nifty crossed 26,000. The Sensex closed at 84,914.04 points, down 14.57 points or 0.017%, while the Nifty closed at 25,940.40 points, up 1.35 points or 0.0052%.
Sectoral Performance
Among the sectoral indices, Nifty Metal was the top mover, rising by 2.97%.
Expert Opinions
Rupak De, Senior Technical Analyst at LKP Securities, stated, “For the rally to continue, the Nifty must decisively break above the 26,000 level. Until then, we expect range-bound movement, with the index fluctuating between 25,800 and 26,000 over the next few hours to a few days.”
Vikram Kasat, Head of Advisory at PL Capital – Prabhudas Lilladher, added, “Several factors contributed to this rally, including strong corporate earnings, resilient macroeconomic indicators, and increased foreign institutional investor inflows. The market momentum was further bolstered by a bullish outlook on India’s economic growth.”
Shrikant Chouhan, Head of Equity Research at Kotak Securities, mentioned, “We are of the view that the short-term market texture is still positive, but due to temporary overbought environments, we could see range-bound activity in the near future.”
Global Influence
The US Federal Reserve’s decision to cut interest rates by 50 basis points provided fresh support to Indian stocks. Loosening monetary policy in the US typically leads to capital flowing to markets with higher policy rates, including India.
Foreign Investments
Foreign portfolio investors have increased their investments in India, hoping for better returns due to interest rate differentials. They have invested Rs 48,872 crore in Indian stocks in September, marking the fourth consecutive month of net buying.
Doubts Revealed
Sensex -: Sensex is a short form for the Bombay Stock Exchange Sensitive Index. It is a number that shows how well the top 30 companies listed on the Bombay Stock Exchange are doing.
Nifty -: Nifty is a short form for the National Stock Exchange Fifty. It is a number that shows how well the top 50 companies listed on the National Stock Exchange are doing.
Global rate cuts -: Global rate cuts mean that central banks in different countries are lowering their interest rates. This makes borrowing money cheaper and can help boost the economy.
Corporate earnings -: Corporate earnings refer to the profits that companies make. When companies make more money, their stock prices usually go up.
Foreign investments -: Foreign investments are when people or companies from other countries put their money into businesses or stocks in India. This can help the Indian economy grow.
Foreign portfolio investors -: Foreign portfolio investors are people or companies from other countries who invest in Indian stocks and bonds. They do this to make money from the growth of Indian companies.
Net buyers -: Net buyers means that the foreign investors bought more stocks than they sold. This shows that they are confident in the Indian market.
Rs 48,872 crore -: Rs 48,872 crore is a large amount of money. One crore is equal to 10 million, so this amount is 48,872 times 10 million rupees.