Indian Stocks Continue To Rally, Sensex Closes Above 85,000, Nifty Above 26,000
Sensex closed at 85,169.87 points, up 255.83 points or 0.30 per cent, while Nifty closed at 26,004.15 points, up 63.75 points or 0.25 per cent
Stock indices in India continued to march ahead, touching fresh highs on Wednesday. Sensex closed above 85,000 and Nifty above 26,000 for the first time.
Sensex closed at 85,169.87 points, up 255.83 points or 0.30 per cent, while Nifty closed at 26,004.15 points, up 63.75 points or 0.25 per cent. Among the sectoral indices, Nifty media was the top mover at 2.94 per cent.
US Federal Reserve's monetary policy committee loosening interest rate by steep 50 basis points, in particular, has been lending fresh support to Indian stocks.
Loosening monetary policy in the US through rate cuts typically leads to a flight of capital to markets where policy rates are high. The steeper the rate cut in the US, the more the tendency to flight of capital to alternative investment destinations, including India.
Continued buying by foreign portfolio investors (FPIs) also somewhat supported the stock indices. Foreign portfolio investors upped their investments in India, hoping for a better return on investments due to the interest rate differentials.
They have so far mopped up Rs 50,913 worth of stocks in India in September, data made available by NSDL showed. They have been net buyers for the fourth month now.
"We maintain our bullish outlook amid ongoing consolidation and recommend focusing on stock selection aligned with sectoral trends. Besides rate-sensitive sectors, we observe strong momentum in metal and power stocks, while the current correction in IT presents a buying opportunity. Traders should plan their positions accordingly," said Ajit Mishra - SVP, Research, Religare Broking.
Firm growth, inflation at manageable levels, political stability at the central government level, and signs that the central bank is done tightening its monetary policy have all contributed to painting a bright picture for the India stocks.
So far in 2024, Sensex and Nifty rose in the range of 17-20 per cent.
"The domestic market may face short-term challenges owing to a decline in FIIs inflow and shift of funds to other emerging markets due to their cheap valuation," said Vinod Nair, Head of Research, Geojit Financial Services. (ANI)
