Sensex Today: Benchmark S&P BSE Sensex, and the Nifty50 indices hit new record highs on Monday, lifted by Maruti Suzuki, M&M, Reliance Industries, Axis Bank, L&T, Bharti Airtel, TCS, and ITC. The m-cap of all BSE listed firms touched Rs 401-trillion mark during the day.
Aided further by strong global momentum, the BSE Sensex rallied 494 points, or 0.67 per cent, to settle at 74,743 levels. It hit a fresh lifetime high of 74,869 during the day. The NSE Nifty50, meanwhile, zoomed 163 points, or 0.68 per cent, to shut shop at 22,666. It hit a new high of 22,697 intraday.
In the broader markets, the BSE MidCap and SmallCap indices closed mixed with the former up 0.26 per cent, but the latter down 0.06 per cent.
Among sectors, the Nifty Auto advanced over 2 per cent, the Nifty Realty 1.32 per cent, and the Nifty Metal 1 per cent. On the flipside, the Nifty PSU Bank index sliped 0.86 per cent.
Market View: Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
It is important to understand that macroeconomic expectations are changing fast. This year began with market expectations of seven rate cuts by the Fed in 2024. Then it came down to three and now many believe that the Fed may cut only twice this year. The strength of the US economy and labour market has surprised the majority of experts and market participants. Despite the scaling down of rate cut expectations the mother market continues to be buoyant, setting new records. This will provide the global support for equity markets like India.
The Q4 results season will kick start results of TCS on 12th. For IT companies, results will be tepid and, therefore, market response will depend on the management commentary. Results of financials will be good and this can push up Bank Nifty higher led by banking majors like HDFC Bank, ICICI Bank etc. Small finance banking segment is a category doing well. Capital goods and autos are on a strong wicket. FMCG is weak weighed by poor volume growth.
Global Cues
Asian markets traded on a mixed note as traders weighed the possibility of the US Fed cutting interest rates this year after a forecast-busting US jobs report dented hopes for a first move in June.
Wall Street’s rallied Friday on news that 303,000 jobs were created in the United States in March, with investors focusing on the positives for the economy instead of the monetary policy implications.
Asian investors struggled to take the baton from Wall Street on a mixed day.
Hong Kong, Tokyo, Sydney, Seoul and Taipei rose, but Shanghai, Singapore, Manila and Wellington were all down.
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