Indian stock markets surged to new all-time highs on Thursday, driven by strong performance in auto and metal stocks on the monthly derivatives expiry day. The BSE Sensex closed at a record 85,836.12, up 666.25 points or 0.78 per cent, while the Nifty 50 index gained 211.90 points or 0.81 per cent to end at 26,216.05.
Among Sensex stocks, Maruti Suzuki was the top gainer, surging 4.76 per cent to close at 13,384.30. Other major gainers included Tata Motors (up 3.08 per cent to 993.20), Mahindra & Mahindra (up 2.97 per cent to 3,180.85), Bajaj Finserv (up 2.91 per cent to 1,982.35), and Tata Steel (up 2.48 per cent to 165.60). Only two Sensex stocks ended in the red: NTPC (down 0.44 per cent to 434.40) and Larsen & Toubro (down 0.90 per cent to 3,761.70).
The market rally was supported by positive global cues, including stimulus measures announced by China and expectations of interest rate cuts in the United States. Buying interest was observed across most sectors, with auto and metal stocks leading the gains.
On the Nifty, Maruti Suzuki emerged as the top gainer, surging 4.48 per cent, followed by Grasim Industries (3.19 per cent), Tata Motors (2.83 per cent), Shriram Finance (2.78 per cent), and Bajaj Finserv (2.59 per cent). On the other hand, Cipla (-1.47 per cent), ONGC (-1.24 per cent), Larsen & Toubro (-0.89 per cent), Hero MotoCorp (-0.80 per cent), and NTPC (-0.60 per cent) were among the top losers.
Shrikant Chouhan, Head Equity Research at Kotak Securities, commented on the market performance: “Today, the benchmark indices continued positive momentum... Technically, after a muted opening market successfully cleared 26000/85300 mark and post breakout positive momentum intensified. A bullish candle on daily charts and breakout continuation formation on intraday charts indicating further uptrend from the current levels.”
The market breadth was slightly negative, with 2,293 stocks declining against 1,686 advances on the BSE. A total of 257 stocks hit their 52-week highs, while 46 touched their 52-week lows. Seven stocks hit the upper circuit, while two hit the lower circuit.
Sectoral performance was largely positive, with the Nifty Auto index gaining over 2 per cent. The Nifty Metal index also rallied more than 2 per cent, while consumer durables stocks faced some profit booking at higher levels.
Ajit Mishra, SVP of Research at Religare Broking Ltd, provided insights on the market trend: “Supportive global cues and rotational buying across sectors are driving the index higher each week. Current indicators suggest this upward trend will continue, with Nifty likely to approach the 26,500 mark. While all sectors are participating in the movement, we continue to favor rate-sensitive sectors such as banking, auto, realty, and financials, and recommend selectively picking stocks from the metal and energy sectors as well.”
The volatility index, India VIX, cooled down by 7.12 per cent, settling at 11.84, indicating a decrease in market volatility.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, attributed the market upsurge to multiple factors: “Winding up of positions by investors on the monthly expiry day coupled with buoyancy in Asian and European market cues triggered a sharp upsurge... Falling bond yields in the US and some other developed economies coupled with stimulus announcements by China has fuelled fresh optimism in global equity markets, including India.”
Technical analysts pointed to positive chart patterns and potential further upside. Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, noted: “Technically, the index has given a fresh breakout to the rising channel pattern around 26,000 and managed to sustain above 26,200 threshold. As long as, Nifty sustains above the breakout level of 26,000 a ‘buy on dips’ strategy should be adopted for Nifty.”
The banking sector also showed strength, with the Bank Nifty index closing at 54,375.35, up 273.70 points or 0.51 per cent. Other key indices also performed well, with the Nifty Next 50 gaining 0.74 per cent to close at 77,086.95, while the Nifty Midcap Select index remained nearly flat at 13,258.60. The Nifty Financial Services index rose 0.67 per cent to end at 25,155.45.
Vikram Kasat, Head - Advisory at PL Capital - Prabhudas Lilladher, highlighted upcoming market catalysts: “The next big triggers for the market are: the festive season which spurs consumer spending, Q2 FY25 results, and whether RBI MPC decides to cut rates following Federal Reserve’s 50 bps rate cut.”
Deepak Jasani, Head of Retail Research at HDFC Securities, provided additional context: “Markets in Asia and Europe rallied as technology shares rallied and on China news as Beijing unveiled more economic stimulus measures. Beijing announced more measures to revive the world’s second-largest economy, including cash handouts for the poor and a reported $140 billion injection into the largest state-run banks.”
Looking ahead, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, suggested potential upside targets: “Having reached upside target of 26,250 levels (1.618 per cent Fibonacci Extension) on Thursday, the Nifty could now move up towards another upside levels of 26,900 (1.786 per cent Fibonacci Extension) by the next couple of weeks. Immediate support is at 26,000.”
On September 25, 2024, FIIs/FPIs were net sellers in the Indian market, offloading ₹973.94 crore, while DIIs were net buyers with ₹1,778.99 crore. Clients recorded a net sell of ₹1,297.62 crore, and NRIs posted a net sell of ₹8.06 crore. Proprietary traders were net buyers, adding ₹255.50 crore.
As the Indian stock market continues its upward trajectory, investors and analysts remain optimistic about the near-term outlook, buoyed by positive global cues and sector-specific strengths. However, market participants will be closely watching upcoming economic data and corporate earnings for further direction.