Key benchmark indices extended gains and opened at fresh record highs on Tuesday
Key benchmark indices extended gains and opened at fresh record highs on Tuesday as investor sentiment remained firm amid strong FII buying. The BSE Sensex rose 370 points to 65,580, and the NSE Nifty50 gained 80 points to a new high of 19,408.
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Bajaj twins led gains on the Sensex, rallying 5-7 per cent after Bajaj Finance’s new loans booked during Q1FY24 grew 34 per cent to 9.94 million.
L&T, IndusInd Bank, M&M, Titan, HDFC Bank and Wipro were the other gainers. Hero Moto was the additional winner on the Nifty.
On the flip side, Bharti Airtel and Reliance fell 0.7 per cent and 2 per cent, respectively. Eicher Motors dropped 4 per cent on the Nifty. ONGC, Axis Bank, NTPC, Divi’s Lab were the other frontline drags.
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The broader markets held relative strength over benchmarks. The BSE MidCap and SmallCap indices gained up to 0.57 per cent.
Among sectors, Nifty Financials, IT and Consumer Durables led gains, up 0.5-1 per cent, while Oil & Gas, Metal and FMCG pockets underperformed.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The unabated surge in FPI inflows will keep the market resilient. The sharp U-turn in FPI investment from Rs 34146 crores of selling in the first two months of this year to Rs 90986 crores of buying in the last two months has turned the market decisively in favour of bulls. The surge in the market during the last 4 sessions was led mainly by the HDFC twins and RIL with some support from ITC. It is important to remember that these stocks have strong and improving fundamentals. Bajaj Finance can contribute to this select large-cap led rally since the company has reported 34% YoY growth and 9% QoQ growth in AUM. This is also a leading indicator of the resilient credit growth in the economy.”
“It makes sense to remain invested in this strong market which has taken most market participants by surprise. Optimism is fine but there is no room for exuberance since valuations do not allow an unabated rally,” he said.
