Benchmark index Nifty surged 90 points in morning deals to hit its record high of 18,908.15 for the first time since December 2022. Meanwhile, Sensex also jumped 300 points to a new high of 63,716.
However, Sensex has been hitting multiple new highs since last week.
Broader markets were also trading higher, in line with the benchmarks. Nifty Midcap and Nifty Smallcap indices rose around 0.3 percent each in morning deals.
In the Nifty 50 index, Adani Enterprises, JSW Steel, Titan, Adani Ports and Divi's Labs were the top gainers, up between 1-3.5 percent whereas HDFC Life, Kotak Bank, Axis Bank, ONGC and Sun Pharma led the losses.
The rise in the Indian markets mainly comes on the back of the metal index. Nifty Metal jumped over 1 percent. Meanwhile, Nifty Auto, Nifty Pharma, Nifty Realty, and Nifty PSU Bank were also trading over 0.25 percent each. Nifty Bank also added 0.15 percent whereas Nifty IT and Nifty FMCG were flat.
Nifty Media was the only sectoral index in the red.
The record rally in the domestic markets has been led by strong domestic growth, moderating inflation, strong foreign inflows, and decent March-quarter earnings. However, analysts feel that the valuations of Indian markets remain a concern.
"The rise in the benchmark indices was mainly due to the surge in HDFC twins whose merger is likely to happen on 1st July. The huge delivery volumes in HDFC twins ( ₹2900 crores) indicate that selling in the stocks to abide by the 10% holding ceiling for mutual funds is getting absorbed by interested buying. This indicates that the stock, which was weighed down by concerns regarding the merger, is likely to do well post-merger. This will help Bank Nifty also to move higher. However, the high market valuation continues to be a concern for the near term. Investors can book some profits at record highs," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
