On August 1, the Indian stock market saw its key benchmarks, the Sensex and Nifty 50, hit new closing highs. This was a continuation of their recent gains, marking their fifth consecutive day of rising values. The Sensex closed at 81,867.55, up 126 points or 0.15 percent, while the Nifty 50 ended at 25,010.90, gaining 60 points or 0.24 percent.
The Sensex reached a fresh all-time high of 82,129.49 during the session, and the Nifty 50 peaked at 25,078.30. The surge in these indices was largely driven by strong performances from major companies like HDFC Bank and Reliance Industries. Their contributions helped propel the benchmarks to new levels, showcasing a positive trend in the market.
Despite these records, the broader market did not perform as well. Both midcap and smallcap indices experienced losses. The BSE Midcap index fell by 0.80 percent, and the Smallcap index dropped by 0.70 percent. This decline was attributed to profit booking amid concerns about high valuations.
Global market cues were mixed on this day. Major European markets saw declines due to disappointing corporate earnings reports. However, US stock futures showed positive movement as the Federal Reserve hinted at possible rate cuts in September. Federal Reserve Chair Jerome Powell indicated that the first rate cut could come soon if the economic data continues to support it.
In India, the mixed global cues, along with strong corporate earnings, helped the benchmark indices achieve new highs. The Nifty 50 surpassed the 25,000 mark, and the Sensex entered the 82,000 zone. However, weak European market performance and mixed signals from Asian markets moderated the gains by the end of the trading session.
According to Prashanth Tapse, Senior Vice President of Research at Mehta Equities, the market saw a skewed session. While broader and sectoral indices faced losses due to profit-taking, sectors such as metals, oil and gas, and power saw gains. This shift indicated that investors were becoming more selective, focusing on specific stocks rather than broad-based bullish strategies.
Among the Nifty 50 stocks, Power Grid, Coal India, and ONGC led the gainers with increases of 3.82 percent, 3.47 percent, and 2.03 percent, respectively. Conversely, Mahindra and Mahindra, Tata Steel, and Hero MotoCorp were the top losers, with declines of 2.78 percent, 1.37 percent, and 1.35 percent.
Sector-wise, indices such as Nifty Media, Realty, PSU Bank, and Auto experienced significant losses. Nifty Media fell by 1.89 percent, Realty by 1.70 percent, PSU Bank by 0.99 percent, and Auto by 0.74 percent. Meanwhile, the Nifty Bank and Private Bank indices remained relatively flat.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the broader market had a negative bias due to rising geopolitical tensions in the Middle East, which pushed up crude oil prices. He mentioned that sectors like capital goods and realty were impacted by profit-taking, and the auto sector was affected by lower-than-expected sales figures.
Looking ahead, Jatin Gedia, a technical research analyst at Sharekhan, expects the market rally to continue, potentially reaching levels between 25,330 and 25,530. He pointed out that while there might be some consolidation due to divergences in momentum indicators, the overall price action suggests a positive outlook for the Nifty.
While the Sensex and Nifty 50 reached new closing highs, the broader market showed some weakness. Investors are advised to keep an eye on global cues and sector-specific developments as they navigate the current market environment.
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