Market Closes 1.5% Higher After Marking Record Highs For The First Time

The robust surge in mid-cap companies, Adani and metal stocks, as well as the heavyweights in the HDFC twins and bank stocks, helped the Indian stock market trade at a record high on Wednesday. The benchmark index Nifty reached a record high of over 19,000, and the Sensex for the first time reached a high of over 64,000 intraday. Nifty surpassed the record high of 18,887.6 it reached on December 1 of the previous year. After marking an all-time high on Dalal Street, NIFTY 50 ended 1.61% higher at 18,992.55 level whereas Sensex ended 1.57% higher at 63,960.98 level.

With HDFC and HDFC Bank extended gains after announcing plans to finalise their proposed merger on July 1, all 13 key sectoral indices saw advances. The top gainers in the Nifty 50 index were Adani Enterprises, Reliance, Adani Ports, HDFC Bank, and Infosys, while the top 5 gainers were Tata Motors, Sun Pharma, Titan, IndusInd Bank, and L&T under Sensex.

Siddhartha Khemka, Head of Retail Research, Broking and Distribution, MOFSL said "After making several attempts in the past few days, Nifty finally managed to cross its previous highs. Strong institutional flows, healthy macros and robust earnings growth drove domestic market towards its new highs. Even the current valuations are reasonable at 19x one-year forward PE which at previous peak had touched a high of 24x. With monsoon kicking in and RBI taken a rate pause, the strong momentum in earnings is likely to continue. Thus at current valuations, market is expected to continue its upmove and remain buoyant."

V.L.A. Ambala (SEBI Registered Research Analyst), Stock Market Today (SMT) said "Investors who witnessed the previous market dip and subsequent panic may find solace in the current bull run, which distinguishes itself from its predecessor. This time, instead of succumbing to fear, a cautious approach of 'wait and watch' seems more appropriate as the price sustains its upward momentum. The technical patterns, coupled with the optimistic sentiment emanating from the price action, point towards a potential breakout.

The consolidation and spending of time at the resistance level suggest a bullish flag and pole pattern, further bolstering the positive outlook. Today, we witness a remarkable achievement as the Sensex reaches a new high of 63,716.00. This monumental milestone not only signifies the market's strength but also instils confidence that this upward trajectory is likely to persist in the days ahead."