Indian Stock Market Surges to Record Highs
The Indian stock market witnessed a dramatic rally on Thursday, September 12, 2024, with both the Sensex and Nifty hitting record highs. The BSE Sensex soared 1,593 points or 2% to reach an intraday high of 83,116, surpassing the 83,000 mark for the first time ever. Similarly, the Nifty50 surged 415 points to a lifetime high of 25,433, exceeding the 25,400 level for the first time.
However, the indices retreated slightly by the closing bell. The Sensex ended 1,439.55 points or 1.77% higher at 82,962.71, while the Nifty50 settled at 25,388.90, up 470.45 points or 1.89%.
Factors Contributing to the Rally
Short covering: According to analysts, the Nifty index witnessed short covering for Calls in the range of 25,150-25,200 amid the weekly F&O expiry.
Reports of China potentially cutting interest rates on mortgages as early as this month to boost consumption provided a much-needed sentiment boost to the market.
The statement by India's External Affairs Minister, S Jaishankar, indicating progress in border talks with China, further fueled the rally.
Positive cues from global markets, including a strong performance by US stocks overnight, also contributed to the bullish sentiment.
Sectoral Performance
Metal stocks led the rally, with the Nifty Metal index soaring 2.9% to 9,291. Individual shares like Nalco, NMDC, Hindalco, Vedanta, and Jindal Steel witnessed significant gains.
Other sectors that performed well included IT, pharma, and auto.
Outlook
Analysts believe the market rally may continue in the near term, supported by positive global cues and expectations of strong corporate earnings. However, they also caution that rising inflation and interest rates could pose challenges in the long run.