Stock market indices extended their winning streak on Tuesday, September 12, during early trading hours. This marked the eighth consecutive day of gains, and the Nifty reached a new all-time high level.
The positive momentum in the stock market was influenced by a generally strong performance in global markets and the arrival of new foreign investments during the early trading hours.
In the initial trading session, the 30-share BSE Sensex surged by 412.02 points, reaching 67,539.10. Meanwhile, the Nifty also saw significant gains, rising by 114 points and hitting a new record high at 20,110.35.
Among the companies listed on the Sensex, notable gainers included Larsen & Toubro, ICICI Bank, Sun Pharma, JSW Steel, Infosys, Tata Consultancy Services, Axis Bank, and Bharti Airtel. These companies saw their stock prices rise during the trading session.
On the other hand, NTPC, Maruti, Hindustan Unilever, and Tata Motors were among the companies that didn’t perform as well, experiencing a drop in their stock prices during the trading session.
The US stock markets closed with gains on the preceding Monday.
According to V K Vijayakumar, who is the Chief Investment Strategist at Geojit Financial Services,
The recent rally in the Nifty, which allowed it to surpass the significant 20,000 mark, has been driven by optimism about India’s growth potential at a time when global growth is sluggish and China’s growth is slowing down rapidly. Additionally, foreign institutional investors (FIIs) have also contributed to this positive trend by making purchases worth Rs 1,473 crore in Indian stocks.
This rally is considered healthy because it involves fairly valued large banking stocks and Reliance Industries (RIL), according to V K Vijayakumar. This is happening despite the fact that the overall market valuation is becoming expensive. In other words, the presence of well-valued banking stocks and RIL’s involvement has helped maintain the positive momentum in the market, even as stock prices, in general, are rising.
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Foreign Institutional Investors (FIIs) became buyers on Monday, purchasing equities worth Rs 1,473.09 crore, as reported by exchange data.
The global oil benchmark, Brent crude, increased by 0.39 percent, reaching USD 90.99 per barrel.
On Monday, the 30-share BSE benchmark reclaimed the 67,000 level, recording a significant increase of 528.17 points or 0.79 percent, closing at 67,127.08. Meanwhile, the Nifty also performed well, ending at 19,996.35, marking a gain of 176.40 points or 0.89 percent. During intra-day trading, the Nifty even reached a historic milestone by crossing the 20,000 mark for the very first time.