Sensex, Nifty 50 Settle at Fresh Closing Highs; 5 Key Factors That Drove the Market Today

Sensex, Nifty 50 Settle at Fresh Closing Highs; 5 Key Factors That Drove the Market Today

Mumbai: The Indian equity market ended Tuesday’s session on a positive note, with both the Sensex and Nifty 50 indices hitting fresh closing highs. The benchmark Sensex index surged by 451.74 points, or 0.79%, to settle at 57,801.37, while the broader Nifty 50 index gained 131.60 points, or 0.77%, to end at 17,175.55.

The rally in the market was fueled by multiple factors, including:

1. Strong Global Cues: Positive cues from global markets boosted sentiment in the domestic market. The US markets ended higher overnight, with the S&P 500 rising by 0.73% and the Dow Jones Industrial Average gaining 0.59%.

2. Robust Corporate Earnings: Strong corporate earnings from companies like HDFC Bank, Axis Bank, and Tata Motors instilled confidence among investors. The earnings season continues to be a key market driver, with many companies reporting better-than-expected results.

3. Positive Economic Outlook: The International Monetary Fund (IMF) raised its growth forecast for India to 6.8% for FY24, up from its previous estimate of 6.1%. This optimism about India’s economic growth outlook supported the market rally.

4. Increased Retail Participation: Retail investors have been actively participating in the market, contributing to the upward momentum. The Sensex has gained nearly 14% in the last three months, driven in part by increased retail demand.

5. Technical Factors: The Nifty 50 index successfully broke above its previous resistance level of 17,100, signaling further upside potential. Technical indicators also suggested a bullish trend, with the relative strength index (RSI) and moving averages showing positive momentum.

Analysts believe that the market is likely to continue its positive trajectory in the near term, driven by strong corporate earnings, a positive economic outlook, and increased retail participation. However, they caution that investors should remain vigilant to global macroeconomic developments and potential geopolitical risks.