Sensex, Nifty hit fresh record highs today; here’s what analysts expect

Nifty hit the 25,000 mark in early trade on Thursday after US Federal Reserve indicated a possible rate cut in September this year. The 50-stock index surged 0.50% to record high of 25,078, leaving investors guessing how long this bull run will last. Taking into account today’s high, the index has zoomed 33.12% or 6,240 points from its 52-week low of 24,951 hit in October last year. On Monday, Nifty almost touched the 25,000 level with the index hitting a peak of 24,999.75. Nifty has taken 24 sessions to climb to 25,000 from 24,000, the 3rd fastest 1,000-point gain for the NSE index. 

While Nifty rose 15%, Sensex has gained 13.21% this year. On the other hand, Sensex has climbed 23% and Nifty has added 26.62% in a year.

On similar lines, Sensex crossed the 82,000 mark for the first time ever in early deals today.  Subsequently, Sensex hit an all-time high of 82,129, rising 388 points against the previous close of 81,741.

Metal shares were the top gainers on Thursday with the BSE metal index zooming 771 pts to 33,502 against the previous close of 32,771.

Consumer durables and banking indices rose 289 pts and 260 pts, respectively on BSE.

Here’s a look at what experts said on today’s rally and outlook for the market.

Neeraj Chadawar, Head - Fundamental and Quantitative Research, Axis Securities said, “The Indian equity market has reached a significant milestone, reflecting the resilience of the domestic economy. Despite global volatility, India's economy remains strong, as indicated by the recent Union budget's emphasis on infrastructure, fiscal prudence, and rural welfare. While midcap and smallcap stocks have made significant gains, it is believed that large-cap stocks may see increased investor interest in the near future. It's recommended for investors to stay in the market, maintain liquidity, and consider investing in high-quality companies with strong earnings visibility over a 12-18 month horizon. Defensive sectors like non-banking financial companies (NBFCs), telecom, consumption, IT, and pharmaceuticals are expected to be relatively safer in the near term.”

Shrey Jain, Founder & CEO, SAS Online - a deep discount broker said,“Nifty50 touching the 25,000 mark is yet another proof of strong economic growth, growing corporate earnings and rising investors’ participation. This event should be seen as a founding stone of the next phase of growth over the medium to long term. Expectations of strong growth in the domestic economy, positive news flow on interest rates in the USA and policy tailwinds should support stock prices going forward, rewarding investors. Investors should ideally own stocks of companies with strong balance sheets and a track record of earnings growth at this juncture. Expect stock specific movements in the near term.”

“If the Nifty50 sustains above 25,100, then 25,600 should be the next target. The psychologically important level of 25,000 will play a crucial role here. Nifty50 should take support at 24,800 and 24,500. As the Nifty50 ventures into uncharted territories, respecting stop-loss is non-negotiable.” added Jain.