Benchmark Sensex closed above the 77,000 level for the first time, and broader Nifty scaled a fresh peak on Tuesday as key equity indices stayed on the record-breaking run powered by a rally in index majors ICICI Bank, HDFC Bank and Infosys.
Besides, renewed foreign fund inflows amid a firm trend in global equities boosted investor confidence, traders said.
In a range-bound session, Sensex and Nifty settled at their new closing all-time high levels amid intense demand for realty, consumer durable and utility stocks.
Rising for the third straight session, the 30-share BSE Sensex climbed 308.37 points or 0.40% to settle at a new closing peak of 77,301.14. During the day, it jumped 374 points or 0.48% to hit the fresh lifetime peak of 77,366.77.
As many as 2,167 stocks advanced while 1,836 declined and 147 remained unchanged on the BSE.
The NSE Nifty went up by 92.30 points or 0.39% to hit a record closing high of 23,557.90 for the fourth straight session. It rallied 113.45 points or 0.48% to hit the new all-time high of 23,579.05 during the day trade.
“The Indian market touched record highs again and is gradually expanding the gains achieved following the national election. It is responding positively to the upcoming budget, which is anticipated to strike a balance between growth and populism.
“Similarly, it is also taking cues from positive global market trends, with the U.S. moving steadily towards the presidential election in November. Market volatility has decreased over the month, which is contributing to a short-term trend,” said Vinod Nair, Head of Research, Geojit Financial Services.
Fitch Ratings on Tuesday raised India’s growth forecast for the current fiscal to 7.2% from 7% projected in March, citing a recovery in consumer spending and increased investment.
Among the 30 Sensex companies, Power Grid, Wipro, ICICI Bank, Titan, Mahindra & Mahindra, Axis Bank, HDFC Bank, Infosys, JSW Steel and State Bank of India were the biggest gainers.
In contrast, Maruti, UltraTech Cement, Tata Steel, Tata Motors, ITC and Tata Consultancy Services were among the laggards.
“Indian equities are trading at an all-time high zone led by positive macros and US markets scaling to new highs. Further, 27% growth in advance direct tax receipts for the Q1 FY25 supported the sentiments,” Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd, said.
In the broader market, the BSE smallcap gauge jumped 0.96%, and midcap index climbed 0.43%.
Among the indices, realty jumped 2.11%, utilities (1.05%), telecommunication (1%), consumer discretionary (0.90%), bankex (0.83%), services (0.74%) and capital goods (0.73%).
On the other hand, auto, metal and oil & gas were the laggards.
“Global equities ticked higher on Tuesday, following a tech-led rally in the US the previous night and as an uneasy calm held in Europe post the recent selloff and traders awaited remarks from a horde of US Federal Reserve officials,” Deepak Jasani, Head of Retail Research at HDFC Securities, said.
In Asian markets, Seoul, Tokyo and Shanghai settled in the positive territory, while Hong Kong ended lower.
European markets were quoting with gains in mid-session deals. U.S. markets ended higher on Monday.
Foreign Institutional Investors (FIIs) bought equities worth ₹2,175.86 crore on Friday, according to exchange data.
Global oil benchmark Brent crude declined 0.27% to $ 84.02 a barrel.
Equity markets were closed on Monday on account of Eid-ul-Adha.
Rising for the third day in a row, the BSE benchmark climbed 181.87 points or 0.24% to settle at 76,992.77 on Friday. The Nifty rallied 66.70 points or 0.29% to 23,465.60.
“We expect the momentum in equities to continue driven by positive global cues, strong domestic macros, and focus on increased government spending in the upcoming budget,” Mr. Khemka said.