Indian benchmark indices Nifty and Sensex hit their record high levels for the fourth consecutive session on Tuesday led by continuous FPI inflows, and positive global trends. This is the sixth straight session of gains for the Indian markets.
Sensex surged 381 points in intra-day heals to hit a new high of 65,586.60, breaching the 65,500 level for the first time ever. Meanwhile, Nifty advanced 91 points to its new peak of 19,413.50.
The rally in today's deals was led by a rise in financial services, and IT space. Gains in heavyweights Bajaj twins, TCS, HDFC Bank, and ICICI Bank also added to the positive sentiment.
Meanwhile, broader markets were mixed with the Nifty Midcap up 0.06 percent and Nifty Smallcap advancing 0.35 percent.
"The unabated surge in FPI inflows will keep the market resilient. The sharp U-turn in FPI investment from ₹34,146 crores of selling in the first two months of this year to ₹90,986 crores of buying in the last two months has turned the market decisively in favour of bulls. The surge in the market during the last 4 sessions was led mainly by the HDFC twins and RIL with some support from ITC. It is important to remember that these stocks have strong and improving fundamentals. Bajaj Finance can contribute to this select large-cap-led rally since the company has reported 34 percent YoY growth and 9 percent QoQ growth in AUM. This is also a leading indicator of the resilient credit growth in the economy," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
On Sensex, Bajaj Finance, Bajaj Finserv, Wipro, TCS, and Titan were the top gainers while Bharti Airtel, RIL, NTPC, Tata Steel and UltraTech Cement were the top losers.
Meanwhile, on Nifty, Bajaj Twins, Hero Moto, Wipro, and TCS were the top gainers while Eicher Motors, Bharti Airtel, ONGC, RIL and NTPC were the top losers.
Bajaj Finance jumped over 7 percent after it announced that its assets under management (AUM) grew 32 percent to ₹2,70,050 crore as of June 30 compared with ₹2,04,018 crore as of June 30, 2022. The NBFC said that it has recorded its highest-ever quarterly increase in its AUM of approximately ₹22,700 crore in Q1FY24. Deposits book stood at approximately ₹49,900 crore at June end against ₹34,102 crore in the year-ago period, up 46 percent. Meanwhile, customer franchises stood at 7.29 crore compared with 6 crore last year. The NBFC recorded the highest-ever quarterly increase in its customer franchise of 38.4 lakh in Q1 FY24.
Among sectors, Nifty Financial Services rose the most, up 0.7 percent followed by Nifty IT, up 0.6 percent. Meanwhile, Nifty Bank and Nifty Pharma rose around 0.2 percent each. However, Nifty FMCG, Nifty Auto and Nifty Metal were in the red.
Vijayakumar believes that it makes sense to remain invested in this strong market which has taken most market participants by surprise. Optimism is fine but there is no room for exuberance since valuations do not allow an unabated rally, he advised.
