Nifty Touches New All-Time High, Led by Banking and Realty Stocks
The Nifty50 index of the National Stock Exchange (NSE) touched a new all-time high of 22,297.50 points on Friday, February 23, 2024, surpassing its previous peak of 22,197 points achieved on Tuesday. The index closed at 22,252 points, up 0.16% from the previous day. The BSE Sensex also gained 126 points or 0.17% to end at 73,284 points, just below its record high of 73,357 points.
The rally in the domestic market was driven by positive cues from the global markets, as well as the expectations of a pre-poll rally ahead of the general elections due in April-May 2024. The rate cut predictions by the US Federal Reserve vice chair, the surge in Nvidia’s stock, and India’s projected GDP growth of 6.5% for FY25 were some of the factors that boosted the sentiment of the investors.
Among the sectoral indices, the Nifty Bank index outperformed the broader market, gaining 1.03% to close at a new high of 54,621 points. The Nifty Realty index also rose 1.02% to 1,024 points, as the demand for residential and commercial properties picked up in the post-pandemic scenario. The Nifty IT index, however, declined 0.67% to 32,411 points, as the rupee appreciated against the US dollar.
Some of the top gainers in the Nifty50 index were HDFC Bank, ICICI Bank, Axis Bank, Bajaj Finance, and Reliance Industries, while some of the top losers were Infosys, TCS, HCL Technologies, Wipro, and Sun Pharma. The market breadth was positive, as 1,421 stocks advanced and 1,282 stocks declined on the NSE.
According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, the domestic market continued its upward trend, but the broader market ended in the red. He said that the market participants are anticipating a pre-poll rally, as the ruling party is expected to announce some populist measures to woo the voters. He also said that the investors are awaiting the release of the US Federal Open Market Committee meeting minutes for insights into the US Fed’s future direction.
The analysts also advised the investors to remain cautious and selective in the current market scenario, as the valuations are stretched and the earnings growth is yet to catch up with the expectations. They said that the market may witness some profit booking and consolidation in the near term, before resuming its uptrend. They suggested that the investors should focus on the quality stocks with strong fundamentals and growth prospects.
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