Nifty 50, Sensex hit all-time high; why is Indian stock market gaining today?
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Stock market today: Indian stock market benchmarks the Sensex and the Nifty 50 hit their fresh all-time highs in intraday trade on Monday, April 1, amid across-the-board buying despite mixed global cues.
The Sensex opened at 73,968.62 against the previous close of 73,651.35 and rose about 0.82 per cent to hit its fresh all-time high of 74,254.62 within the first two hours of trade.
The Nifty 50 opened at 22,455 against the previous close of 22,326.90 and jumped 0.90 per cent to hit its new record high of 22,529.95 in the morning session.
Mid and smallcap segments saw even stronger gains. The BSE Midcap index rose over 1 per cent while the Smallcap index jumped over 2 per cent in the morning session of trade.
The overall market capitalisation of the firms listed on the BSE rose to over ₹392 lakh crore from nearly ₹387 lakh crore in the previous session.
Why is the Indian stock market gaining today?
Experts point out that the undercurrent of the market is positive due to the strong prospects of the Indian economy. Moreover, expectations of rate cuts starting in the coming months are also underpinning market sentiment. Investors are buying Indian stocks after the recent correction as they remain positive about the Indian stock market for the medium to long term.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services underscored that the undertone of the market is bullish and there is momentum in the market.
“The market has been showing signs of consolidation but the spurt in Nifty by 322 points on the last 2two trading days indicates that the upward momentum can be sustained,” said Vijayakumar.
Vijayakumar highlighted that some mutual funds are reported to have started restricting redemptions from the smallcap schemes due to concerns over frothy valuation in this segment which could result in higher flows of funds into the largecaps. This would lift the large-caps.
The Sensex and the Nifty 50 witnessed impressive gains of 29 per cent and 25 per cent, respectively, in the last financial year (FY24). Experts are optimistic that these indices could continue to record robust growth in the new financial year, despite ongoing challenges.
Also Read: FY25 Outlook: Can Nifty 50 repeat the feat of FY24? 5 crucial challenges that loom
“Considering the consistent earnings growth and an easing interest rate environment, the Nifty 50 may deliver a healthy double-digit return in the low to mid-teens,” Naveen Kulkarni, Chief Investment Officer at Axis Securities PMS, told Mint.
Also Read: Expert view: Nifty 50 may give a double-digit return in FY25: Naveen Kulkarni of Axis Securities PMS
Niraj Kumar, Chief Investment Officer at Future Generali India Life Insurance Company expects FY25 to be driven by sustained corporate earnings growth, policy continuity and a favourable geopolitical landscape and any disappointment on these fronts may have negative ramifications on the market.
Also Read: Expert view: Corporate earnings growth, geopolitical stability key triggers for FY25, says Niraj Kumar
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 01 Apr 2024, 11:17 AM IST
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