The Indian equity benchmark Nifty50 soared to a new peak of 22,529.95 levels on April 1, marking the first trading session of FY2024-25, surpassing its previous record of 22,526.6.
At 9:37 am, the Sensex surged by 567.59 points or 0.77 percent to 74,218.94, while the Nifty climbed by 192.20 points or 0.86 percent to 22,519.10. Market data indicated 2,606 shares advancing, 417 declining, and 128 remaining unchanged.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market displayed a bullish undertone with significant momentum, suggesting potential sustainability in the upward trend. Prashanth Tapse, Senior VP (Research) at Mehta Equities, highlighted investors’ inclination toward bargain hunting, fueled by the US Fed’s commitment to three rate cuts despite inflation challenges.
Tapse also noted that while near-term intra-day volatility might persist, investor focus is likely to shift towards fourth-quarter corporate earnings in the coming days.
Technical analysis suggests Nifty’s support lies at 22,200, with key resistance now at 22,600 after breaching its earlier record high. The broader market also showed upward momentum, with Nifty midcap 100 and Nifty smallcap 100 gaining up to 1.3 percent in early trade.
All sectors traded positively, with media, metal, and PSU bank indices leading the gains. Notably, the Nifty PSU Bank index surged by 90 percent in FY24, indicating potential for further upside due to attractive valuations, as per Vijayakumar.
Global Markets Overview
In global markets, the S&P 500 ended the week with mild gains, marking its best first-quarter performance in five years. US stocks closed higher, driven by a resilient economy and hopes for potential rate cuts later in the year. The American PCE price index, a key metric for the Federal Reserve, rose by 0.3 percent in the last month.
Japanese stocks saw weakness, with the Nikkei 225 index falling by 1.5 percent. However, other Asian indices recorded gains, with South Korea’s Kospi and Hong Kong’s Hang Seng index increasing by up to 0.9 percent.
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