Global, Domestic Cues, Expiry Drive Market Higher
MUMBAI: Frontline indices Sensex and Nifty-50 made new all time highs for 7th session in a row on equity derivatives expiry day on bullish Asian market cues with stimulus package announced by China leading to huge rally in all major Asian markets.
Winding up of positions by investors on the monthly expiry day coupled with buoyancy in Asian and European market triggered a sharp upsurge as both benchmark Sensex & Nifty scaled fresh highs. Buying in banking, auto and metal stocks led the rally in benchmark indices with Sensex now inching towards the 86 k mark," said Prashanth Tapse, senior VP-Research, Mehta Equities.
"Falling bond yields in the US and some other developed economies coupled with stimulus announcements by China has fuelled fresh optimism in global equity markets, including India",Tapse said.
"All the sectors soared with Auto and Metal being the top contributors. Mid and Small caps underperformed the benchmark Index,. said Aditya Gaggar, director, Progressive Shares.
"Power sector has been in focus and rallied in the last two days after the government announced the National Electricity Plan. On the domestic front, The Asian Development Bank (ADB) has maintained India's GDP growth forecast at 7 per cent for FY25 and 7.2 per cent for FY26 amid an optimistic outlook, said an analyst.
Domestic institutional investors were net buyers by Rs 2405.12 crore while foreign portfolio investors were net buyers by Rs 629.96 crore.
The volatility index touched 11.75 level intra-day and closed with a fall of 5.81 per cent to 12.00.
"Positive global as well as domestic cues helped the benchmark to continue its northbound journey. Further, a decline in the volatility index India VIX to 11.75 levels provided comfort to the investors. Nifty continued its impressive run and closed at a record high for the fifth consecutive session, indicating strong market strength," said Siddhartha Khemka, head - Research, Motilal Oswal Financial Services.