The Sensex closed at a new all-time high of 81,867.55, rising 126 points, while the Nifty scaled the historic 25,000 mark for the first time, closing at 25,010.90. Gains in banking and oil shares, along with positive cues from the US Federal Reserve hinting at a rate cut by September, fueled the market rally. On Thursday, the benchmark Sensex advanced by 126.21 points, or 0.15%, to close at a new lifetime high of 81,867.55. The broader Nifty rose by 59.75 points, or 0.24%, to settle at a record high of 25,010.90, marking the first time it surpassed the 25,000 mark.
Key movers and market sentiment
Top gainers: Power Grid, NTPC, HDFC Bank, Nestle India, Adani Ports and SEZ, Maruti Suzuki India, and Reliance Industries led the gains.
Lagging stocks: Mahindra & Mahindra, Tata Steel, Bajaj Finserv, SBI, Larsen & Toubro, and Tata Motors saw declines.
Analysts' insights
Vinod Nair, Head of Research at Geojit Financial Services, attributed the initial positive sentiment to the Fed Chair’s indication of a possible rate cut in September due to easing inflationary pressures. However, he noted that broader market gains were tempered by rising crude oil prices amid escalating geopolitical tensions in the Middle East.
Sector performance
Utilities, power, energy, oil & gas, and metal sectors performed well, while realty, capital goods, industrials, auto, telecommunication, and consumer discretionary sectors faced profit-booking pressures.
Corporate highlights
Maruti Suzuki: Shares rose by 1% following a 47% jump in net profit for the June quarter.
Omaxe: Shares declined by 5% for the second day after SEBI restrictions.
AsterDM Healthcare: The stock surged by 6.28% on strong quarterly net profit figures.
Global market influence
Mixed cues from global markets influenced the trading session. Tokyo, Shanghai, and Hong Kong markets closed negatively, while Seoul ended in the green. European markets were lower in mid-session trades, contrasting with positive overnight gains in US markets.
Foreign investor activity
Foreign institutional investors were net sellers, offloading shares worth Rs 3,462.36 crore on Wednesday.
Outlook and future projections
Market analysts highlighted the impact of strong corporate earnings and positive global cues on the current market rally. However, they advised caution, noting that profit-taking could influence short-term market movements.
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