Closing Bell: Market's Record Run Continues; Nifty Tops 24,000, Sensex Skyrockets; Reliance & UltraTech Lead

The Indian stock markets continued their record-setting streak, with the Nifty 50 crossing the 24,000 mark and the Sensex surpassing 79,000 for the first time in history. Thursday's session saw the benchmark indices reaching record high levels, fueled by robust buying in heavyweight stocks and a notable recovery in the IT sector.

Leading the charge were Reliance Industries Limited (RIL) and a recovery in IT stocks. UltraTech Cement, NTPC, and Kotak Mahindra Bank also contributed significantly to the upward momentum, lifting the Nifty alongside other key players.

The Nifty 50 hit an intra-day high of 24,088, while the Sensex reached 79,396, with the Nifty Bank peaking at 53,181. This surge marks the third consecutive session of record highs, driven by strong performances from five major Nifty 50 constituents: UltraTech Cement, Grasim Industries, Reliance Industries, ICICI Bank, and Axis Bank. Notably, these stocks touched new 52-week highs during the day's trade.

Cement stocks were in the limelight, with UltraTech Cement soaring by 4.3% and Grasim Industries rallying by 2.6%. UltraTech's impressive 5% gain was attributed to its acquisition of a 23% stake in India Cements, a move that also saw India Cements' stock jump by 13%, building on the previous day's gains.

Despite the overall bullish trend, the market experienced some profit booking, especially in the banking sector. The Nifty Bank index slipped by 59 points to close at 52,811. Conversely, the broader market indices exhibited positive trends, with the Nifty Midcap 100 rising by 0.45% and the Nifty Smallcap 100 edging up by 0.17%.

The Sensex ended the day 569 points higher at 79,243, while the Nifty closed 176 points up at 24,045. Midcap indices also showed strength, with the Midcap Index gaining 178 points to finish at 55,424.

Manappuram Finance saw a significant boost, climbing 7% on the back of positive brokerage notes. Vodafone Idea continued its upward trajectory, gaining 4% amid expectations of a tariff hike. Industrial heavyweights like ABB, Cummins, and Siemens recorded healthy gains, rising between 3% and 4%.

However, not all sectors fared equally well. Public sector banks faced pressure due to talks of potential farm loan waivers in various states, leading the Nifty PSU Bank index to drop by 1%. Fertilizer and agriculture-related stocks also struggled, with Chambal Fertilizers being the top loser in this segment. Ramco Cements fell 7% from its highs following the UltraTech-India Cements deal.

Vishnu Kant Upadhyay, Assistant Vice President - Research and Advisory at Master Capital Services Ltd, commented on the market's performance, stating, "The domestic stock market surged on Thursday for the fourth consecutive day, buoyed by robust buying in leading blue-chip stocks. This propelled the Nifty index above the significant 24,000 mark, while the Sensex breached the 79,000 level with a remarkable 400-point jump. Key factors such as increasing buying in index heavyweights, political stability, and the return of foreign institutional investors (FIIs) into the domestic market contributed to the market ascent."

Investor sentiment remains buoyant as the market breadth favoured advances, with the advance-decline ratio standing at 1:2. This positive sentiment is underpinned by strong corporate earnings, favourable macroeconomic indicators, and continued foreign investment inflows.

The market's robust performance reflects a growing confidence in India's economic prospects. Analysts predict that if the current trends continue, the indices could see further gains, although periodic profit booking and sector-specific challenges may create volatility.

Thursday's trading session showed the resilience and optimism of the Indian stock markets. With the Nifty and Sensex setting new benchmarks, investors are eyeing the potential for further gains. While certain sectors faced challenges, the overall market trajectory remains positive, driven by strong performances from key heavyweights and strategic acquisitions.

As the markets continue to climb, all eyes will be on upcoming economic data, corporate earnings, and global market trends to gauge the sustainability of this historic rally.