Indian stock markets opened on Monday on positive sentiment with the Sensex index crossing 77,000 points and the Nifty 50 crossing 23,400 points, hitting new record highs. The strong performance in the domestic stock market came after Narendra Modi was sworn in as India’s Prime Minister for a third consecutive term on Sunday.
The BSE Sensex hit an all-time high of 77,079.04 while the NSE Nifty 50 hit an all-time high of 23,411.90 soon after the market opened on June 10. Gains in key stocks of the index like Reliance Industries, UltraTech Cement, Grasim Industries and Cipla supported the gains.
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Buying was also seen across the market with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising.
Sector-wise, Nifty PSU Bank, Nifty Realty, Nifty Oil & Gas, Nifty Pharma and Nifty Auto led the gains while Nifty IT declined.
Market sentiment improved as concerns over political stability and policy continuity eased after Prime Minister Narendra Modi’s new government was sworn in over the weekend. Narendra Modi was on Sunday sworn in for a third consecutive term as India’s prime minister. Along with him, 71 ministers of the new coalition government were also sworn in with secrecy by President Drupadi Murmu.
Please read this: 71 ministers, including Amit Shah, JP Nadda and Shivraj Singh Chouhan, were sworn in. See the full list here
Indian equity market participants will be keeping a close eye on key global and domestic factors such as the composition of the new NDA government’s Council of Ministers, US Federal Reserve policy outcomes, Bank of Japan interest rate decision and Indian and US inflation data, which will be announced this week, for further clues on the market direction.
On Friday, the Sensex and Nifty 50 posted a strong rally of over 2 per cent each following the Reserve Bank of India (RBI) measures. The RBI’s Monetary Policy Committee (MPC) kept the repo rate and policy stance unchanged and maintained the inflation target while raising India’s GDP forecast for FY25.
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Technology Outlook
Rahul Ghose, CEO, Hedged In, noted that the increase in put open interest (OI) at 23,000 levels and call OI at 23,500 levels indicates that the index is moving within a range this week.
“For Nifty, the pivot level is trading at 23,133, Nifty buy zone is trading at 23,060 to 23,135 and extreme buying low would be in the range of 22,810 to 23,045. Nifty sell zone is 23,445 to 23,520 and in case of index breakout above this level, Nifty may test the extreme high of 23,770,” Ghose said.
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