Sensex and Nifty Reach New Highs Driven by Banking, Auto, and IT Sectors

Sensex and Nifty Reach New Highs Driven by Banking, Auto, and IT Sectors

VoM News Desk | September 15, 2023 | 02:57 PM IST | Breaking News | Follow on Google News

Sensex and Nifty Reach New Highs Driven by Banking, Auto, and IT Sectors. Image/MInt

In a remarkable turn of events, India’s domestic benchmark indices, Sensex and Nifty, scaled fresh record highs on Friday, September 15. These achievements were propelled by robust gains primarily in the banking, auto, and IT sectors, with prominent contributors including heavyweights such as HDFC Bank, TCS, and Mahindra and Mahindra. The prevailing market sentiment remained upbeat, tracking positive global cues, particularly in response to recent data signaling a potential revival in China’s economy.

Impressive Gains

The Sensex concluded the trading session at an impressive 67,838.63, reflecting a substantial gain of 320 points, equivalent to 0.47 percent. Simultaneously, the Nifty settled at 20,192.35, marking a commendable increase of 89 points, or 0.44 percent. This resulted in both indices reaching fresh closing highs, underlining the prevailing bullish sentiment in the market.

Record-Breaking Streak for Sensex

Sensex’s remarkable performance extended over eleven consecutive sessions, delivering an impressive cumulative gain of 4.64 percent during this period. This remarkable streak of daily gains is the longest recorded since October 3, 2007, highlighting the historic nature of this ascent.

Mid and Small Caps Lag

While Sensex and Nifty celebrated their soaring achievements, midcap and small-cap stocks failed to match the benchmark indices’ pace. The BSE Midcap index inched up by a modest 0.09 percent, while the BSE Smallcap index exhibited a slightly stronger gain of 0.27 percent. Over the course of the week, both Sensex and Nifty witnessed gains of nearly 2 percent each. Conversely, the BSE Smallcap index saw a decline of over 1 percent, and the Midcap index experienced a 0.5 percent drop for the week ending September 15.

Auto and IT Sectors Shine Bright

Auto stocks shone brightly during this period, surging by an impressive 1.58 percent to reach record highs. This surge was primarily powered by a remarkable 5.9 percent leap in Bajaj Auto, following a significant upgrade from “neutral” to “buy” by BofA Global Research. Meanwhile, the high-weightage IT index also recorded substantial gains, rising by 0.94 percent. This surge was fueled by growing expectations of a pause in interest rate hikes by the US Federal Reserve in the upcoming week.

Market Dynamics and Outlook

Vinod Nair, Head of Research at Geojit Financial Services, offered insights into the evolving market landscape. He noted that renewed buying interest in auto and IT stocks was driven by expectations of robust festive season demand and substantial deal wins. Additionally, better-than-expected economic data from China and hopes for stimulus measures contributed to the prevailing optimism in global markets. Notably, the European Central Bank (ECB) hinted at a potential interest rate pause due to receding inflation, further boosting market sentiment.

Top Gainers and Losers

On September 15th, among the Sensex top gainers were Bharti Airtel (2.37%), Mahindra & Mahindra (2.23%), HCL Technologies (1.66%), Tata Motors (1.57%), and Tech Mahindra (1.51%). Conversely, the top losers included Asian Paints (-1.32%), Hindustan Unilever (-1.26%), Bajaj Finserv (-0.80%), NTPC (-0.69%), and IndusInd Bank (-0.49%).

Among the Nifty50, the leading gainers were Bajaj Auto (6.29%), Hero MotoCorp (2.25%), Mahindra & Mahindra (2.17%), Grasim (1.99%), and HCL Technologies (1.60%). The top decliners included Bharat Petroleum Corp Ltd (BPCL) (-1.60%), Hindustan Unilever (-1.27%), Asian Paints (-1.32%), Britannia Industries (-0.97%), and Tata Consumer Products (-0.92%).

Future Outlook

Ajit Mishra, Senior Vice President – Technical Research at Religare Broking, expressed optimism regarding the Nifty’s future trajectory. He expected a continuation of the positive tone in the Nifty, albeit with some intermediate consolidation, particularly at the 20,300 level. Mishra advised participants to maintain a “buy on dips” approach and seek stocks that offer a favorable risk-to-reward ratio, reinforcing the ongoing confidence in the market.

VoM News Desk

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