Nifty and Sensex Reach Record Highs in Mumbai
On August 29, the benchmark indices Nifty and Sensex in Mumbai hit lifetime highs during mid-trading hours. The Nifty touched a record high of 25,174.55 points, while the Sensex rose to 82,220.68 points.
The indices opened almost flat, with Nifty starting 17 points down at 25,035.30 points and Sensex opening with a minor gain of 35 points at 81,822.56 points.
Expert Opinions
Ajay Bagga, a market and banking expert, said, “Finally, it (Nifty) has broken through to fresh all-time highs. This opens up possibilities for a strong upmove now. Sector-wise, domestic cyclical will lead the way while IT is coming back in favour of selective names.”
Bagga also mentioned that the markets have weathered various challenges, including geopolitical news, Yen carry trade unwinding, and concerns about a US slowdown. He noted that FII flows have improved, adding to robust domestic inflows, and expects further upside in the markets.
VLA Ambala, Co-founder of Stock Market Today, added, “While Nifty is trading at 23x its actual value, many heavyweight stocks like HDFC and Reliance are still trading below their all-time highs. However, sectors like IT, Pharma, FMCG, Consumption, and Metals have been instrumental, driven by factors such as the depreciation of the Indian Rupee, rising inflation in food items, and the growing scope in Pharma due to government projects.”
Ambala advised investors to be cautious, noting that the Nifty index is currently in an overbought zone with RSI levels indicating a potential correction in the next 3-6 months. She suggested focusing on dip-buying opportunities and avoiding FOMO, while sticking to stocks with strong fundamentals.
Upcoming Data
Later this week, the markets will be reading the first quarter GDP data scheduled for Friday. The Reserve Bank of India projected GDP growth for 2024-25 at 7.2%, with Q1 expected at 7.1%. India’s GDP grew by an impressive 8.2% during the financial year 2023-24, continuing to be the fastest-growing major economy.
The Nifty 50 index began on April 22, 1996, with a starting value of 1136.28 points and has now crossed the 25,100 milestone, marking a growth of nearly 22 times.
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).
Indices -: Indices are like scoreboards for the stock market. They show how well a group of stocks is doing overall.
Mumbai -: Mumbai is a big city in India. It is the financial capital of the country, where many important businesses and stock exchanges are located.
Ajay Bagga -: Ajay Bagga is a financial expert who gives advice on the stock market. He helps people understand how the market is performing.
VLA Ambala -: VLA Ambala is another financial expert who comments on the stock market. Experts like him help investors make informed decisions.
Domestic cyclical sectors -: These are parts of the economy that do well when the economy is growing, like cars and houses. They can affect the stock market.
Reserve Bank of India -: The Reserve Bank of India (RBI) is the central bank of India. It manages the country’s money and financial system.
GDP growth -: GDP growth shows how much the economy is growing. It is measured by the total value of goods and services produced in the country.
2024-25 -: This refers to the financial year from April 2024 to March 2025. It is used to measure economic performance over a year.
Q1 -: Q1 stands for the first quarter of the financial year. It includes the months of April, May, and June.
2023-24 -: This refers to the financial year from April 2023 to March 2024. It is used to measure economic performance over a year.
Fastest-growing major economy -: This means that India’s economy is growing faster than other big economies in the world. It shows that the country is doing well financially.