Sensex and Nifty, Indian benchmark indices, soared to record highs on Tuesday, 9 April fueled by optimism in the market.
In another historic moment for the Indian stock market, the former crossed the coveted 75000 mark for the first time in early trade. The Nifty 50, tracking the performance of the top 50 companies, also reached a new peak above 22750. Investors are closely watching the beginning of the Q4 earnings season this week for further cues, although concerns linger regarding higher oil prices and bond yields potentially capping the upside.
Dr. VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services, highlighted the bullish trend in the Indian market, marked by “higher highs and higher lows.” This pattern has validated the effectiveness of the ‘buy on dips’ strategy for investors. Large-cap stocks have notably outperformed, suggesting a continuation of this trend.
Gain-Loss Highlights
Top Gainers – All Up to 2.13% on Sensex
- Infosys
- HCL Tech
- ICICI Bank
- Tata Motors
- Nestle India
- Tech Mahindra
Other Gainers
- Tata Motors (up 1%) after a quarterly rise in its Jaguar Land Rover’s sales
- Godrej Properties (up 7%) to record high levels on higher March quarter sales
- Metal stocks (up 1.5%) with 13 of the 15 constituents logging gains
- IT stocks (up 1.2%)
- Broader markets – small-cap and mid-cap (up 0.6% and 0.3% respectively)
Losers
- Axis Bank (down 0.16%) after news reports of block deal
- Reliance Industries
- JSW Steel
- Titan Company
- Larsen & Toubro
Infosys, a leading IT company, witnessed a surge after a global brokerage firm upgraded its rating and raised the target price. Godrej Properties, a real estate company, also saw a significant jump on the back of record-high quarterly sales. Infosys drove the surge in Nifty IT after BofA upgraded its rating and raised its target price.
Asian Shares Edge Up Ahead of Key Events
Asian shares edged up cautiously ahead of key events such as the US inflation data and the European Central Bank meeting scheduled for this week. Shanghai copper futures reached a two-year high, with precious metals also witnessing significant increases. However, Chinese stocks lagged behind, while Hong Kong’s Hang Seng index saw a 1.2% increase
Nifty IT and Nifty Realty emerged as the top performers, with gains ranging from 1-2%.
Outlook and Strategy
Market experts anticipate further gains in the Nifty index in the coming days, supported by the bullish sentiment. Technical analysis suggests strength around the 22,700 mark for Nifty, while Bank Nifty is expected to consolidate its position at around 48,650. The buy-on-dips strategy is recommended with focus on large-cap banking stocks as Q4 results are expected to be promising.
Challenges
While the market is currently enjoying a positive run, higher oil prices and rising bond yields could potentially limit further gains. External factors such as geopolitical tensions and disrupted global supply chains remain a cause for concern. Addressal of issues related to real estate and corporate bonds to ensure a stable business environment remains important.
