The markets open with the Sensex reaching a new high of 69,599 and the Nifty approaching 21,000.
Benchmarks for the equity markets, the Sensex and Nifty, continued to rise for the seventh straight day on Wednesday, setting new records as a result of persistent buying by foreign institutional investors and a decline in the price of crude oil.
In morning trade, the 30-share BSE Sensex surged 303.25 points, or 0.44 percent, to a new record high of 69,599.39. In addition, the Nifty increased by 100.05 points, or 0.48 percent, to reach a new all-time high of 20,955.15, the broad index.
Analysts blamed falling US bond yields for the unrelenting influx of foreign capital. According to them, domestic investors are still upbeat due to the country’s solid macroeconomic statistics and expectations of continued political stability.
Additionally, they added, investors anticipate that the Reserve Bank will keep interest rates unchanged in its bi-monthly monetary policy decision, which is scheduled for release on Friday.
ITC increased by 1.70 percent, Wipro by 1.43 percent, Tech Mahindra by 1.36 percent, and Nestle India by 1.27 percent among the top Sensex movers. Reliance, Asian Paints, and HCL Tech were among the other winners.
ICICI Bank, NTPC, UltraTech Cement, and Tata Steel, on the other hand, all experienced trading losses of up to 0.82 percent.
According to exchange data, foreign institutional investors bought shares on Tuesday for ₹5,223.51 crore.
In the medium term, the market is expected to rise in anticipation of three things: favorable domestic macros like robust GDP growth, falling inflation, stable interest rates, and soft crude; favorable global cues from declining US bond yields; and expectations of political stability following the elections.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, Bank Nifty will continue to be resilient.
Shanghai Composite was not trading, but the Hang Seng and Nikkei 225 in Asian markets saw gains of 0.54 and 1.72 percent, respectively.
The markets in Europe were not uniform. France’s CAC 40 gained 1.04 percent, while Germany’s DAX gained 1.96 percent. The FTSE 100 in London did not change.
Tuesday’s closing of US markets was uneven, with the S&P 500 seeing a slight decline of 0.06 percent.
In the meantime, the benchmark for global oil, Brent crude, increased by 0.13 percent to USD 77.30 per barrel.
The 30-share BSE Sensex closed at a new record high of 69,296.14 on Tuesday after rising 431.02 points, or 0.63 percent. In addition, the Nifty increased by 168.50 points, or 0.81 percent, to reach 20,855.30, its lifetime high.
On Tuesday, the market capitalization of companies listed on the BSE increased by over ₹2.5 lakh crore, reaching ₹346.47 lakh crore.
A monthly survey released on Tuesday revealed that, in terms of domestic macroeconomic conditions, the growth of India’s services sector reached a one-year low in November due to softer expansions in new work intakes and output, even as price pressures subsided.
At a one-year low of 56.9 in November, the seasonally adjusted S&P Global India Services Business Activity Index dropped from 58.4 in October.
