Sensex Today: Indian shares rose on Thursday to fresh record highs on a really in FMCG and bank stocks.
Shares of Reliance Industries traded in a special session to determine the share value of its demerged financial services unit, Jio Financial Services. The discovered price for Jio Financial Services was 261.85 rupees, ahead of the street estimates of 160-190 rupees.
The benchmark indices staged a steady rally where the Nifty50 inched closer to the 20,000-mark. The 50-pack index hit a fresh record high of 19,992 in the intra-day trade before settling at 19,979, up 146 points or 0.74 per cent.
The S&P BSE Sensex, meanwhile, touched a new peak of 67,616, before closing at 67,572, up 474 points or 0.7 per cent.
ITC, which ruled 2.75 per cent higher, was the top gainer on the frontline indices and became the seventh company to have a market capitalisation over Rs 6 trillion. At close, the company’s m-cap stood at Rs 6.12 trillion.
That apart, Kotak Bank, Sun Pharma, ICICI Bank, Bharti Airtel, Maruti Suzuki, SBI, Reliance Industries, Axis Bank, and HUL were the top gainers, gaining between 1 per cent and 2.6 per cent.
In the broader market, the BSE MidCap ended flat, while the BSE SmallCap index gained 0.19 per cent.
Among sectors, the Nifty Pharma and FMCG indices added 1.3 per cent each, and the Nifty Bank and Private Bank indices rose 1 per cent each.
Santosh Meena, Head of Research, Swastika Investmart Ltd, said: “The current uptrend in the Nifty is undeniably strong, and there is a possibility that it may surpass the 20000 mark soon. However, it’s worth noting that certain short-term technical and derivative indicators are approaching overbought levels, which suggests that a minor correction or consolidation could occur. In this context, it is important to consider that 19800 is a critical resistance level that needs to be overcome for further upside potential. If the Nifty manages to sustain above this level, it could potentially reach 20000 and even 20200. Conversely, on the downside, 19500 is a significant support level that is likely to provide strong backing in case of any downward movement. Following a robust surge in IT stocks from lower levels, there is a possibility that HDFC Bank, ICICI Bank, and LT could take leadership and gain momentum in the near future. These stocks have the potential to catch up and make significant strides.”
“The current market conditions appear to be more favorable for buy-and-hold traders rather than day traders. Chasing after a rapid upward movement can be challenging, as it may lead to missed opportunities or increased risk. However, it is important to maintain a bullish perspective as we are currently in a long-term structural bull market. In such a market, every dip or consolidation can be seen as a potential buying opportunity. Investors with a long-term outlook should consider utilizing these moments of temporary price declines to accumulate positions in stocks or other assets they believe in. By adopting a buy-and-hold strategy, investors can take advantage of the overall upward trend and potentially benefit from the market’s long-term growth potential,” Meena added.
Global Cues
US stocks rose on Wednesday following earnings reports from a spate of banks and other big companies.
The S&P 500 rose 10.74, or 0.2%, at 4,565.72. The Dow Jones Industrial Average gained 109.28 points, or 0.3%, at 35,061.21. The Nasdaq composite edged up by 4.38, or less than 0.1%, at 14,358.02.
European shares closed higher on Wednesday, led by UK stocks after a faster-than-expected slowdown in British inflation.
The pan-European STOXX 600 index ended up 0.3%, extending gains to the second straight session.
Asian stock markets mostly rose on Wednesday.
Hong Kong’s Hang Seng index fell 0.3% at 18,952.31. China’s Shanghai Composite ended flat at 3,198.84.
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