The Indian stock market continued its upward trajectory on Monday, September 23, 2024, with both benchmark indices closing at fresh all-time highs. The BSE Sensex surged 384.30 points or 0.45 per cent to close at 84,928.61, while the Nifty 50 soared 148.10 points or 0.57 per cent to end the day at 25,939.05.
The market rally was broad-based, with 2,382 stocks advancing compared to 1,731 declines on the BSE. A total of 345 stocks hit their 52-week highs, while only 40 touched their 52-week lows.
Rate-sensitive sectors led the gains, with the PSU Bank index rallying over 3 per cent. Auto and realty stocks also saw significant buying interest. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, “Today the benchmark indices continued positive momentum. Almost all the major sectoral indices traded in positive territory, but the PSU Bank index outperformed, rallying over 3 per cent.”
Among Sensex stocks, Mahindra & Mahindra emerged as the top gainer, rising 3.29 per cent to close at 3,049.40. State Bank of India followed with a 2.55 per cent gain, while Bharti Airtel, Kotak Mahindra Bank, and Hindustan Unilever rounded out the top five gainers, rising 2.25 per cent, 1.71 per cent, and 1.62 per cent respectively.
On the Nifty, Bajaj Auto led the gains with a 3.66 per cent increase, followed by M&M (3.26 per cent), ONGC (3.06 per cent), Hero MotoCorp (2.94 per cent), and SBI Life (2.66 per cent).
On the flip side, ICICI Bank was the biggest loser among Sensex constituents, declining 1.25 per cent. IndusInd Bank, Asian Paints, Tech Mahindra, and HCL Technologies also featured among the top losers, shedding between 0.49 per cent and 1.05 per cent.
For the Nifty, Eicher Motors was the top loser, down 1.64 per cent, followed by ICICI Bank (-1.23 per cent), Divi’s Lab (-1.19 per cent), Wipro (-1.13 per cent), and IndusInd Bank (-1.01 per cent).
The positive sentiment was attributed to multiple factors, including the recent U.S. Federal Reserve decision to maintain interest rates and global market optimism. Vikram Kasat, Head of Advisory at PL Capital - Prabhudas Lilladher, stated, “The Indian markets continued their uptrend following the U.S. Federal Reserve’s recent decision to cut interest rates by 50 basis points, boosting global sentiment and pushing the Nifty index to a new record high above 25,900.”
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, provided technical insights, saying, “Technically, the index is oscillating within a rising channel and is trading near the upper trend line resistance of the channel pattern, which is around 25,900-26,000 levels, making them a strong hurdle in the short term. Therefore, on the upside, 26,000 will act as an immediate hurdle for Nifty.”
The market’s strength was further evidenced by the performance of broader indices. The Nifty Next 50 surged 1.62 per cent to close at 76,707.50, while the Nifty Midcap Select index gained 0.67 per cent to end at 13,200.60.
Sectoral performance was largely positive, with only the Nifty IT index bucking the trend. Ameya Ranadive, Sr Technical Analyst at StoxBox, noted, “All sectors gained except for Nifty IT, which was the only loser.”
The volatility index, India VIX, rose by 7.77 per cent to settle at 13.79, indicating an increase in market volatility.
In stock-specific movements, Amber Enterprises saw a remarkable surge of 19 per cent, driven by expectations of strong earnings growth in the electronics manufacturing services sector. Telecom stocks also rallied following positive analyst reports on industry data.
The market’s upward momentum was supported by continued foreign institutional investor (FII) interest. Vikram Kasat observed, “Foreign institutional investors (FIIs) maintained long positions in the index, further supporting the rally.”
Looking ahead, analysts remain cautiously optimistic. Ajit Mishra, SVP of Research at Religare Broking Ltd, advised, “Given the outperformance of rate-sensitive sectors like banking, financials, auto, and realty, traders should maintain a ‘buy on dips’ strategy, focusing on stock selection, with a preference for large-cap and large mid-cap stocks.”
As the Nifty approaches the psychological 26,000 mark, some experts anticipate a potential pause in the rally. Yedve noted, “If the index sustains above 26,000 it could test the 26,200 levels. On the downside, 25,600 will serve as an immediate support for Nifty.”
For the Bank Nifty, which also reached a new lifetime high of 54,197.95 before settling at 54,106, Yedve commented, “In the short-term index might face a hurdle near 54,500 levels and if sustains above it then it might test the levels of 55,000-55,500, where the upper trend line resistance of the channel pattern is placed.”
With global cues remaining favourable and domestic economic indicators showing resilience, market participants will be closely watching for any signs of profit-taking or consolidation in the coming sessions.