Stock Market Today: The record rally in Indian stock markets continued with key equity indices Sensex and Nifty 50 closing at fresh record highs on Tuesday, 18 June.
Positive global news influenced domestic sentiment and gains in some large stocks including HDFC Bank, ICICI Bank and Power Grid helped lift the index.
Experts say the Indian stock market is witnessing fresh foreign capital inflows on hopes of a rate cut, which coupled with a positive macroeconomic outlook and favourable monsoon weather are supporting positive market sentiment.
“Major benchmark indices continue to surge to record highs as rising FII (foreign institutional investors) buying interest coupled with easing domestic inflation has raised expectations of interest rate cuts by the end of the year,” said Prashant Tapse, senior vice president, research at Mehta Equities.
“The monsoon has gotten off to a good start and investors are hopeful that rains will pick up in the coming weeks, boosting consumption, especially in rural areas, and supporting overall growth in the remaining quarters of the current fiscal,” Tapse said.
The Nifty 50 has risen for the fifth consecutive day, gaining nearly 5% so far in June, as investors remain positive on the medium to long-term outlook for the Indian equity market. With the elections over, market focus has shifted to the upcoming budget, macroeconomic indicators, global economic data and equity fundamentals.
On Tuesday, the Sensex index hit an all-time high of 77,366.77 during trading hours and closed 308 points or 0.40 percent higher at 77,301.14. The Nifty 50 index hit an all-time high of 23,579.05 during trading hours and closed 92 points or 0.39 percent higher at 23,557.90.
Both major indexes ended at new closing highs.
In terms of contribution to the index, shares of ICICI Bank, HDFC Bank, Power Grid, Infosys, Mahindra & Mahindra and Axis Bank contributed the most to the rise in the Nifty 50 index.
Midcap and smallcap indices outperformed the benchmarks with the BSE midcap and smallcap indices closing up 0.43% and 0.96%, respectively.
The total market capitalization of all companies listed on the BSE is approximately ₹From nearly 43.73 crore. ₹It rose by Rs 434.9 lakh crore in the previous session, while investors ₹2.4 lakh crores per session.
As many as 384 stocks, including Mahindra & Mahindra, Tata Steel, Bajaj Auto, Cipla, D-Mart, Eicher Motors and Hero MotoCorp, hit their fresh 52-week highs in intraday trade on the BSE.
Today’s Top Nifty 50 Gainers
Shriram Finance (up 3.22 per cent), Power Grid (up 3.13 per cent), Wipro (up 2.94 per cent) and ICICI Bank (up 1.82 per cent) were among the top gainers in the Nifty 50 index.
Top decliners in Nifty 50 today
Maruti Suzuki (down 2.14 per cent), Dr Reddy’s Laboratories (down 1.60 per cent) and UltraTech Cement (down 1.09 per cent) were the biggest losers in the index.
Today’s Sector Indexes
Nifty Realty (up 1.88 per cent), Consumer Durables (up 1.59 per cent) and Private Bank (up 1.10 per cent) indices ended with significant gains.
Nifty Bank closed 0.88 per cent higher while the PSU Bank index rose 0.25 per cent.
On the other hand, Nifty Media (down 0.64%), Pharma (down 0.35%) and Metal (down 0.22%) were among the stocks that fell.
Expert Market Insights
“Indian markets have once again hit record highs, gradually extending the gains made after the general elections. Markets are reacting favourably to the upcoming budget which is expected to strike a balance between growth and populism,” said Vinod Nair, head of research at Geojit Financial Services.
“The firm is also taking cues from the positive performance of global markets as the US steadily marches towards the presidential elections in November. Market volatility has declined over the past month, which is contributing to the near-term trend,” Nair said.
Ajit Mishra, senior vice president, research, Religare Broking, expects the current trend to continue with the Nifty 50 gradually rising towards the 24,000 level.
“The renewed strength in the banking index confirms our bullish outlook. Hence, we recommend maintaining a ‘buy low’ strategy focused on stocks showing higher relative strength,” Mishra said.
Nifty 50 Technical Analysis
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, after opening with a gap up, the market maintained positive momentum throughout the day. On the daily and intraday charts, the market is seeing higher highs and higher lows, confirming the upward trend from the current levels.
“Currently, 23,500/77,000 is likely to act as a key support level for trend following traders. As long as the market is trading above this level, the bullish sentiment is likely to continue. On the upside, the market can rally to 23,700-23,750/77,600-77,800. On the other hand, a drop below 23,500/77,000 could signal a change in sentiment. Below this, traders may prefer to exit their long positions,” Chouhan said.
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Disclaimer: The views and recommendations expressed are those of the individual analysts, experts and brokerage firms and not of Mint. You are advised to consult a qualified professional before making any investment decisions.
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