The benchmark Sensex and the Nifty on Tuesday hit new record highs led by a near 7 per cent gain in the country’s largest passenger car maker Maruti Suzuki India (MSIL).
The benchmark Sensex rose to 80,397 before ending the session at 80,352, with a gain of 391 points or 0.5 per cent. The Nifty 50 index finished at 24,433, up 113 points or 0.5 per cent. Both indices made new highs both on an intraday and closing basis.
Shares of other auto companies such as Mahindra & Mahindra (M&M) and Tata Motors also rose although they don’t have any offerings in the strong hybrid segment—in which cars run both on battery and petrol.
Shares of M&M rose 2.7 per cent, while Tata Motors gained 1.2 per cent. The BSE Auto index rose 2.2 per cent and was the best-performing sectoral index.
Indian equities have largely been on an upward trajectory following the general election results amidst hopes of policy continuity, earnings stability, and stable macroeconomic numbers. From its lows on June 4, the Sensex gained 14.4 per cent and the Nifty 15 per cent. The Sensex has hit new highs on both intraday and closing basis during 13 trading sessions.
“Overall, we expect markets to trade with a positive bias and take cues from upcoming inflation data, Q1FY25 earnings, and budget. The pharma sector is likely to remain focused over the next few days on a comfortable valuation and expectation of healthy earning growth in Q1,” said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Overall market breadth was a mixed bag, with 1,960 stocks advancing and 1,973 declining on the BSE. The combined market cap of all BSE-listed companies hit a new high of Rs 451 trillion, or $5.4 trillion.
Going forward, both domestic and global factors will continue to drive the market momentum. Investors will keenly track corporate results and Federal Reserve Chair Jerome Powell’s testimony to Congress for clues on the US interest-rate outlook. Investors will be trying to gauge how soon the US central bank will cut rates.
“Currently, consumption sectors like FMCG and auto are leading the gains, buoyed by progress in the monsoon and kharif sowing. Investors eagerly await the first-quarter earnings results, which will guide market direction. With optimistic revenue growth expectations, the IT sector is expected to kickstart the season positively. Additionally, continuous positive FII inflow contributes to the prevailing positive sentiment,” said Vinod Nair, head of retail research at Geojit Financial Services.
First Published: Jul 09 2024 | 7:18 PM IST