Sensex Today Ends At Record High, Up 666 Points | Nifty Above 26,150 | 3 Reasons Why Indian Share Market is Rising

India’s leading stock indices, the BSE Sensex and NSE Nifty50, have continued their upward momentum, breaking new records with their latest performance. The markets opened strong, and as the day progressed, the bullish sentiment held firm, resulting in the indices closing at unprecedented highs.

At the close of Thursday’s trading, the Sensex had surged by 666 points (a 0.8% rise), while the Nifty50 had gained 181 points, marking a 0.7% increase. Notably, stocks such as Maruti Suzuki, Tata Motors, and M&M Steel led the rally, contributing significantly to the day’s market performance. On the other hand, Cipla, ONGC, and NTPC were among the key laggards in the session.

At the same time, the GIFT Nifty was trading at 26,363, reflecting a 373-point gain as trading activity continued. While the BSE MidCap index ended the day flat, the BSE SmallCap index dipped slightly by 0.4%. Sectoral performance showcased a strong demand in the metal and auto sectors, which saw significant buying interest, whereas stocks in the power and capital goods sectors came under selling pressure.

Notably, Bajaj Auto, Bosch, and Britannia achieved their respective 52-week highs during the session, showcasing strength in select stocks. Traders and investors can stay updated on the latest market movers through the “Stocks to Watch” section, which provides insights into the biggest daily market developments.

Key Reasons for Market Rise:

1. Positive Global Sentiment

Global market cues played a pivotal role in fueling the rally in Indian stock markets. Across the Asia-Pacific region, markets rebounded, with Chinese markets continuing their upward trend. The Hang Seng index in Hong Kong was trading at 19,336, an improvement from its previous close of 19,129.1. In Japan, the Nikkei 225 gained 1.7% in early trading, with the broader Topix index rising by 1.2%. This global optimism helped to sustain positive momentum in India’s markets.

2. Declining Oil Prices

The sharp drop in oil prices further fueled market optimism. News that Saudi Arabia, the world’s largest crude oil exporter, was prepared to ease its price targets ahead of raising output led to a slump in oil prices. Brent crude futures fell by US$1.89 to US$71.57 per barrel, while West Texas Intermediate crude dropped by US$1.83 to US$67.86 per barrel. The fall in oil prices is particularly significant for India, given its status as a major importer of crude, which helps ease inflationary concerns.

3. Rally in Auto and Metal Stocks

Among the sectoral gainers, auto and metal stocks stood out, each registering gains of more than 2%. The rally in these sectors was instrumental in driving the benchmark indices higher. This surge is part of a broader trend where India’s ongoing logistics boom is expected to create long-term growth opportunities. As India’s manufacturing, exports, and domestic consumption expand, the logistics and related sectors are poised for sustained growth.

ITC Reaches New High

In other key news from the FMCG sector, ITC’s stock climbed 1%, reaching a new high of Rs 522.45 on 26 September. This milestone pushed ITC’s market capitalization beyond Rs 6.5 trillion for the first time. Additionally, the conglomerate increased its stake in Sproutlife Foods, with its shareholding in the company rising to 47.5% following the acquisition of additional shares.

Despite this growth, ITC’s stock has posted a relatively modest gain of 13% in 2024. However, with the company holding a dominant 78% share in India’s cigarette market and expanding its presence in FMCG segments like staples and personal care products, ITC remains a formidable player in the industry.

Paytm Stock Rises Following Block Trade

Shares of Paytm’s parent company, One 97 Communications Ltd, surged over 4% after a major block trade resulted in 0.8% of the company’s equity changing hands for Rs 3.3 billion. Approximately 4.7 million Paytm shares were traded at an average price of Rs 701 per share. Following this transaction, Paytm’s stock price rose to Rs 713.2, pushing its market capitalization to Rs 454 billion.

Paytm shares have been on an impressive run, with the stock gaining 63% over the past six months. This growth has far outpaced the 18% rise in the Nifty50 index during the same period, reflecting strong investor interest in new-age tech companies, especially as market conditions improve and the potential for lower US interest rates emerges.

Crest Ventures Shares Surge

Crest Ventures, a lesser-known player in the finance and real estate sectors, saw its shares skyrocket by 10% on 26 September. The company announced nine ongoing projects, with six of them expected to generate sales exceeding Rs 59.1 billion, more than double the company’s market capitalization of Rs 16 billion. Crest Ventures’ diverse portfolio includes residential, commercial, and retail developments across key cities like Mumbai, Chennai, Kolkata, and Raipur.

The company's financials also reflected impressive growth, with its total income for the June 2024 quarter soaring to Rs 651.6 billion, compared to Rs 246.1 billion in the same period the previous year. Profitability increased as well, with Crest Ventures reporting a net profit of Rs 454.5 billion, up from Rs 82.3 billion year-on-year.

In conclusion, The Indian stock market is currently benefiting from a confluence of positive factors, including strong global cues, falling oil prices, and sector-specific rallies in auto and metal stocks. With continued growth expected in key sectors like logistics, FMCG, and tech, the market appears well-positioned for further gains. Investors should stay tuned to ongoing developments, especially in sectors poised for long-term growth.