Heavyweights propel Nifty to gain 100 points; up for 11th day

Led by select index heavyweights--including Reliance Industries, Tata Motors, and ITC--the Sensex hit a fresh record high of 82,285.83 and the Nifty 50 scaled a fresh peak of 25,192.90 during Thursday's trading session. The Sensex finally closed 349 points, or 0.43 percent, higher at 82,134.61. The Nifty 50 settled at 25,151.95, up 100 points, or 0.40 percent.

The BSE Mid Cap Index slipped 0.27 percent, while the Small Cap Index dropped 0.72 percent.

Shares of Tata Motors, Bajaj Finserv, and Britannia ended as the top gainers in the Nifty 50 index. On the flip side, shares of Grasim, Mahindra and Mahindra and JSW Steel ended as the top losers. While 28 stocks closed with gains, the remaining 22 ended with losses in the Nifty pack.

What drove the market?

The domestic market benchmarks clocked decent gains due to gains in select heavyweights, while the Mid  Cap and Small Cap indices ended lower amid mixed global cues and a lack of fresh triggers back home.

Reliance Industries was the biggest contributor to the gains in the key indices, which ended with an increase of 1.51 percent at ₹3,040.85 after it announced a 1:1 bonus issue.

At its annual general meeting, the company revealed its future growth plans across business segments, which were cheered by the market.

“Markets were back in action on the expiry day after range-bound sessions, as benchmark indices hit fresh intraday lifetime highs led by gains in Reliance Industries, which announced a 1:1 bonus issue. Markets were volatile and had slipped into the red in mid-session, but rebounded in late trades as investors cheered the bonus issue announcement by RIL at its AGM, which led to buying action in other select frontline stocks,” said Prashanth Tapse of Mehta Equities.

Apart from Reliance, ITC, Tata Motors, and Bajaj Finance appeared among the top contributors to the gains in the indices.

The Nifty 50 has been in the green for 11 consecutive sessions, gaining 4.2 percent overall.

For 11th consecutive session

The market's medium-to-long-term outlook remains bright due to the prospects of strong economic growth and a massive influx of retail investors. However, experts believe stretched valuations can keep the upside capped. Moreover, the market seems to have most triggers, such as a Fed rate cut in September, which may also limit its upside in the near term.

"While many positives, such as robust domestic macro, sustained earnings growth, and political stability, have already been factored into current Indian market valuations, strong retail participation in Indian markets—directly and via mutual funds—with SIP figures crossing 20,000 crore continues to act as a positive trigger for our markets," according to Jyoti Vaswani of Canara HSBC Life Insurance.

It was the expiry day of the August futures and options (F&O) series and the Nifty 50 gained 3 percent in this series. 

Rupak De ofLKP Securities said the Nifty 50 has undergone a brief consolidation breakout. The RSI is in a bullish crossover, indicating strong price momentum. In the short term, the index might move towards 25,300, with support at 25,000.

European markets

Major European markets were up with decent gains when the Sensex closed. However, among Asian peers, Korea's KOSPI, China's Shanghai Composite Index, and Japan's Nikkei ended in the red, following a decline of over one percent in the Nasdaq overnight after Nvidia's quarterly earnings failed to impress investors.

According to a Reuters report, even though Nvidia’s third-quarter revenue forecast of $32.5 billion exceeded Wall Street’s expectations, its second-quarter revenue beat analysts' predictions by the smallest margin in six quarters.

                                                     (By arrangement with livemint.com)