Benchmark stock market indices closed at record highs on Tuesday, driven by a strong rally in financial and banking stocks. The S&P BSE Sensex surged 712.44 points, or 0.92%, to reach 78,053.52, marking the first time it has crossed the 78,000 mark. The NSE Nifty50 climbed 188.05 points, or 0.80%, to settle at 23,725.9, also hitting a lifetime high of 23,710.45 during the trading day.
Ajit Mishra, SVP of Research at Religare Broking Ltd., noted, "The markets edged higher, gaining over half a percent, signaling a resumption of the uptrend after a brief pause. Following an initial uptick, Nifty traded within a range during the first half, but selective buying in heavyweight stocks, particularly from the banking sector, spurred a sharp surge as the day progressed."
Mishra added that aside from the banking sector, the IT sector also performed well. In contrast, the realty, metal, and energy sectors ended in the red. The broader indices were slightly on the back foot, closing flat to marginally lower.
"We believe the current buoyancy in banking, coupled with notable strength in IT, will dictate the trend, while other sectors may contribute on a rotational basis. Traders should align their positions accordingly and avoid a contrarian approach," he advised.
Leading the top gainers on Nifty50 was Shriram Finance, with its price increasing by 3.95%, followed by Axis Bank, which rose by 3.63%. ICICI Bank was up by 2.90%, HDFC Bank increased by 2.07%, and Tech Mahindra rose by 1.77%.
Conversely, the top losers included Bharat Petroleum Corporation Limited, which saw a decrease of 2.78%. Eicher Motors fell by 1.76%, Power Grid Corporation was down by 1.71%, Asian Paints dropped by 1.21%, and Tata Steel declined by 1.18%.
