The Indian stock market reached to an all time high on Friday, with the Nifty surging to an all-time high of 22,297.50 points, and the BSE Sensex peaking at an impressive 73,427.60. The driving force behind this surge primarily emanated from the exceptional performance of financials and energy stocks.
Although the benchmarks indices are trading lower today, Nifty down by 0.37% and BSE Sensex lower by 0.43% as of 11:12 am. The market experts express confidence in the resilience of domestic equities, even in the face of fading hopes for an early US rate cut.
The market’s steadfastness is attributed to robust macroeconomic fundamentals and consistent domestic inflows. Analysts underscore the positive influence of quarterly results, stable earnings in the energy sector, and the growing interest in public sector banks due to attractive valuations.
“The renewable power push makes the green energy sector attractive. High consumer spending is considered to benefit automakers, retailers, and apparel. Infrastructure remains a long-term opportunity, given planned spending on roads, ports and urban transport ahead of elections. Overall, railways, steel, power, retail, and infrastructure with strong drivers are seeing upside potential. However, prudent selection is needed, given elevated valuations across many sectors,” said Atul Parakh, CEO of Bigul.
Out of the 13 major sectors, 11 witnessed gains. The financial sector saw a noteworthy 0.6% increase, and public sector banks marked a rise of 0.5%. Energy stocks also exhibited positive momentum, reflecting a 0.4% increase. Tata Power Company notably experienced a 2% rise after securing a letter of intent for a power project acquisition valued at 8.38 billion rupees ($101 million).
In a comeback story, ITC, which endured a 14.2% decline in the past four weeks, surged by 1.5%. However, information technology stocks saw a slight decline of 0.3%, while small and mid-cap stocks showcased a positive move with a 0.6% increase.