Nifty 50 Hits All-Time High: Stock Market Soars
The Indian stock market is witnessing a remarkable surge as the Nifty 50 index hit a lifetime high for the first time in 14 months on November 27. It reached 26,295.55, surpassing its previous peak of 26,277.35 set in September 2024. This bullish momentum is echoed by the BSE Sensex, which soared to a 52-week high of 85,940.24, gaining over 200 points on the day.
The Bank Nifty index also made headlines by hitting a record high of 59,802.65, thanks to substantial gains in prominent banks like ICICI Bank, HDFC Bank, and Canara Bank. However, the broader markets did not share in this success, as the Nifty Smallcap 100 and Nifty Midcap 100 indices faced declines.
Sector-wise, gains were noted in Nifty Auto, Nifty FMCG, Nifty Metals, and Nifty Pharma, while indices such as Nifty PSU Bank, Nifty Realty, and Nifty IT experienced losses. Leading the charge on the Nifty 50 were stocks like Bajaj Finance and Asian Paints, whereas HDFC Life Insurance and UltraTech Cement were among the top losers.
This rally has been significantly supported by positive global cues. Asian markets showed an upward trend, and the US stock market also gained due to rising expectations of a rate cut by the US Federal Reserve. Additionally, optimism around a potential peace agreement in the ongoing Russia-Ukraine conflict has bolstered equity market sentiments worldwide.
Domestically, strong expectations for earnings growth amid a robust macroeconomic climate have fueled this optimism. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that the consumption boom observed in October is likely to translate into impressive earnings growth. He believes that if this trend continues, it could lead to further positive momentum in the market.
However, he cautioned that the current valuations may not support a sharp upward trend. The Nifty 50 reaching a new high confirms that the broader trend remains bullish, even amid some profit booking at elevated levels. Immediate resistance is seen at 26,350 - 26,450, while strong support is noted near 26,200 - 26,150.
According to Ponmudi R, CEO of Enrich Money, a sustained close above 26,300 could lead to fresh record highs in the near term. The Bank Nifty has decisively broken its long-term resistance trendline, remaining above its short-term demand zone, with the psychological 60,000 level now presenting a major hurdle.
In conclusion, the overall market sentiment appears bullish, favoring a buy-on-dips strategy. With strong global cues and consistent domestic institutional inflows, the positive undertone in the Indian stock market looks set to continue. Investors are advised to remain cautious and consult certified experts before making investment decisions.
