Sensex tops 79K, Nifty hits 24,000 as RIL, IT stocks extend bull run on D-Street

Indian benchmark indices scaled new highs during the trading session on Thursday, amid the monthly expiry of the F&O contracts for the June series. NSE's barometer Nifty50 index pierced the 24,000-mark for the first time, while BSE's 30-share pack Sensex scaled 79,000 levels during the day.

NSE's Nifty50 index rallied 146.45 points, or 0.60 per cent, for the day to climb 24,015.25-levels, while BSE Sensex surged more than 512 points to new highs of 79,186.93 for the day. However, broader markets underperformed the headline indices as BSE midcap and smallcap indices were trading marginally higher.

With our downside marker of 23640 holding, the ongoing uptrend pushed beyond 23,830. We had placed only low odds for this event yesterday, for fears of a mean reversion move unfolding, said Anand James, Chief Market Strategist at Geojit Financial Services. 

"We retain such fears today as well, but if Nifty continues to float above 23,800, our initial pivot for the day, then expect continued upsides towards 23,960-24,130 or 24,230. Despite the large upsides recently, downside setup does not look to gain momentum today, with the key marker placed at 23,680," he said.

On a sectoral front, the Nifty IT index was the standout leader, followed by the Nifty oil & gas, healthcare and FMCG indices. On the contrary, profit booking was seen in PSU Bank and auto counters. Realty and media counters were also trading in red.

Buying in the index heavyweights like Reliance Industries, HDFC Bank, ICICI Bank, Ultratech Cement, Tata Consultancy Services (TCS) and Infosys lifted the headline indices to their new highs. On the contrary, Maruti Suzuki, Shriram Finance, Larsen & Toubro (L&T) and Sun Pharma were the key laggards on the index.
 

Benchmark indices rallied on Thursday, reversing earlier declines, driven by strong buying in blue-chip companies. This accelerated growth, despite concerns over valuation, suggests a bullish outlook for the Indian market, said Trivesh D, COO Tradejini.
 

"The current momentum indicates that the Sensex might soon touch another level, before the Union Budget. Large-cap stocks, particularly in banking and telecom sectors, are driving this upward trend with their solid fundamentals, reflecting positive market sentiment and investor confidence. Going forward, these sectors are likely to continue supporting the growth," he said.

BSE Sensex has surged more than 7,100 points from its lows on June 4, when the general election results were announced. Similarly, Nifty50 has zoomed more than 2,130 points from its election results day's close. Both the indices have gained nearly 10 per cent in the last three weeks.

The Sensex and Nifty reaching all-time highs amid the retail investor participation has been crucial, alongside strong macroeconomic factors and increasing FPI investments, driving the market and contributing to economic growth, said Sarvjeet Singh Virk, Co-founder & MD at Shoonya.
 

"With a recent stable government, increased spending is anticipated, along with a favorable monsoon to boost the rural economy. However, investors need to be cautious while making any investment decisions, as the markets are at an all-time high, due diligence is necessary," he said.