Stock Market Today: Defying weak global signals, Indian stock market benchmarks Sensex and Nifty 50 hit fresh record highs on Tuesday, June 25, amid a slump in the mid- and small-cap segments.
Domestic market indexes posted healthy gains despite losses in major European markets, while the main U.S. stock indexes, the S&P 500 and Nasdaq, fell due to a 7% drop in Nvidia shares.
During trade on Tuesday, June 25, the Nifty 50 recorded a new all-time high of 23,754.15 while the Sensex hit a new all-time high of 78,164.71.
Axis Bank, ICICI Bank and HDFC Bank were the top gainers on the Sensex index.
Meanwhile, Power Grid, Tata Steel and Asian Paints were the biggest losers in the index.
The Nifty 50 eventually closed at 23,721.30, up 183 points or 0.78 percent, while the Sensex rose 712 points or 0.92 percent to close at 78,053.52. Both the indexes closed at fresh closing highs.
Meanwhile, midcap and smallcap stocks failed to mirror the benchmark trend. The BSE Midcap and Smallcap indices ended down 0.26% and 0.03%, respectively.
Due to the fall in the mid-cap index, the total market capitalisation (mcap) of the BSE listed companies is barely around ₹From 43.58 crore ₹It was 435.6 lakh crores in the previous session.
Why did Sensex, Nifty 50 hit new all-time highs today?
The biggest reason for the rise in the major stock indexes on Tuesday was a solid gain in big bank stocks.
The Nifty Bank index closed 1.74 per cent higher at 52,606.00 after hitting a record high of 52,746.50. The private bank and PSU bank indexes rose 1.70 per cent and 0.13 per cent respectively. Major banking stocks such as Axis Bank, ICICI Bank, HDFC Bank and SBI rose between 1-4 per cent on valuation relief.
Big bank stocks have a large weighting in the benchmark index, so their gains helped lift the benchmark.
“The market rally is being driven by large private sector bank stocks which are priced attractively at the moment. State-run banks are also attractive from a valuation perspective,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.
The Nifty Bank index has risen around 9 percent year-to-date, while the Nifty 50 index has also risen over 9 percent in the same period.
“Most private banking stocks have missed the surge seen in recent weeks, which led to activity in the financials space ahead of monthly expiry on Thursday,” said Prashant Tapus, senior vice president – research at Mehta Equities.
Factors such as healthy monsoon prospects, robust macroeconomic outlook and hopes of policy continuity once the new government is formed also supported market sentiment.
(To be continued)
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