Indian stock indices, Sensex and Nifty, continued their upward momentum, closing at new record highs on Tuesday. The Sensex ended the day at 80,716.55 points, up 0.1%, while the Nifty settled at 24,613.00 points, also up 0.1%. Despite the overall positive close, most sectoral indices ended in the red. Nifty Media saw the biggest decline at 1.03%, while Nifty Realty rose the most at 1.66%, according to NSE data.
Market drivers
The recent rally in the Indian stock markets has been driven by several factors including the moderation in US inflation, better-than-expected results in the IT sector, and the absence of negative market fundamentals. Market participants are now focusing on stock-specific moves due to the ongoing earnings season and are closely monitoring the upcoming Budget presentation on July 23.
Expert insights
Vinod Nair, Head of Research at Geojit Financial Services, noted that the market failed to maintain early gains due to concerns over valuations and subdued expectations for Q1FY25 earnings. However, the cumulative returns for Sensex and Nifty in the current fiscal year have been strong, at 11–13%.
Trading halt
The Indian stock market will be closed on Wednesday due to Muharram.
Technical perspective
Shrikant Chouhan, Head of Equity Research at Kotak Securities, mentioned that despite some profit booking at higher levels, the short-term outlook for the market remains positive.
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