Closing Bell: Market Posts Longest-Ever Gaining Streak Of 13 Days; Sensex & Nifty Hit Record, IT Leads

The Indian stock market continued its record-breaking rally on Monday, September 2, with both the Nifty 50 and Sensex indices notching their fifth consecutive session of gains. Despite facing weak global cues, the benchmark indices managed to extend their winning streak to an unprecedented 13 sessions, marking the longest continuous rally in history. The Sensex surged by 194 points to close at 82,560, while the Nifty 50 gained 43 points to settle at 25,279.

The day was characterized by mixed performances across different sectors, with key heavyweights such as ITC, Bajaj Finance, Infosys, Reliance Industries, and HCL Tech driving the market's upward momentum. However, the rally was not without its challenges, as midcap stocks and certain sectors faced headwinds.

The session saw the Nifty 50 and Sensex hit fresh intraday highs of 25,333.65 and 82,725.28, respectively, underscoring the continued strength in the domestic markets. Despite this, the overall sentiment was somewhat tempered by weakness in global markets. Major European indices, including the UK's FTSE, France's CAC, and Germany's DAX, were in the red as the Indian markets closed. Similarly, in Asia, Hong Kong's Hang Seng and China's Shanghai Composite Index fell by up to 2%, while South Korea's Kospi and Japan's Nikkei managed to eke out modest gains.

The Indian market's ability to post gains despite these global pressures highlights the underlying strength of domestic equities, supported by robust corporate earnings and steady foreign institutional investment inflows.

Among the standout performers of the day were ITC and HCL Tech. HCL Tech, in particular, continued its upward march, closing at a record high, reflecting investor confidence in the company's growth prospects amid a strong demand environment for IT services. ITC also contributed to the market's gains, buoyed by its diversified business model and steady performance across its FMCG, hotels, and cigarette segments.

Bajaj Finance and Bajaj Finserv were among the other heavyweights that saw significant buying interest, driven by anticipation of a forthcoming housing finance IPO. In the automobile sector, the performance was mixed. Hero MotoCorp and Bajaj Auto rose by 2% each, benefiting from strong monthly sales figures. However, Tata Motors and Ashok Leyland saw declines as commercial vehicle (CV) sales remained under pressure.

On the downside, Coal India witnessed a 1% decline as the company reported a fall in production and dispatch figures for August, raising concerns about its short-term operational outlook. The metal sector also faced a tough day, with NMDC falling by 3% following a decline in SGX iron ore prices. Other metal stocks followed suit.

Conversely, oil marketing companies (OMCs) enjoyed a strong session, with stocks rising by up to 3% as crude oil prices continued to fall. Gujarat Gas was another notable gainer, jumping by as much as 13% on news of a scheme of arrangement, which also lifted GSP shares.

Granules India emerged as one of the top midcap losers, ending the session lower as investors booked profits following recent gains. Ola Electric remained under pressure, slipping for the seventh straight session and down 27% from its recent highs. MOIL saw its stock price slip by 4% after the company announced a reduction in manganese ore prices by up to 20%.

The overall market breadth favoured declines, with the advance-decline ratio standing at 1:1, suggesting that the gains were concentrated in a few sectors while a broader swath of the market experienced selling pressure.

As the market looks ahead, the continuation of this rally will likely depend on a combination of domestic factors, such as corporate earnings and macroeconomic data, as well as global cues, including movements in commodity prices and developments in major economies.