Indian equity benchmarks continued their rally on 3 July, with the BSE Sensex crossing the 65,000 mark for the first time ever, driven by global market trends and foreign fund inflows.
Rallying for the fourth straight day, the 30-share index surged 486.49 points or 0.75 per cent to settle at its record high of 65,205.05. The NSE Nifty 50 jumped 133.50 points or 0.70 per cent to end at 19,322.5 for the first time ever, crossing previous close of 19,189.
From the Sensex pack, Reliance Industries, Bajaj Finance, ITC, State Bank of India, Ultratech Cement, HDFC, HDFC Bank and NTPC were among the major gainers.
Following the benchmarks, the broader markets were also trading in green with the Nifty SmallCap 100 surging 1.23 per cent and the Nifty Midcap 100 rising 0.25 per cent.
The GIFT Nifty had a strong start in first session, supporting the Nifty benchmark index to open with a upward trend on Monday. The overall market sentiment remained positive, with trading activity mostly staying within a certain range.
On Monday, easing inflation data boosted the Asian markets, raising hopes that central banks could be nearing the end of their interest rate hiking stance. Japan’s Nikkie 225 surged 1.70 per cent to its highest level in 33 years.
“Sensex has climbed mount 65,000 driven by market momentum. Sustained FPI flows, favourable global market construct and improving macros in India are aiding the momentum. Surge in HDFC twins and Reliance have lifted the Sensex,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
According to Vijayakumar, investors should remain invested but should not be carried away by the rally and chase momentum. Despite rich current valuations, investors are advised to remain cautious.
Srikant Chouhan, Head of Research (Retail), Kotak Securities said the market’s record breaking momentum continued as the strong June GST collections, and the monsoon covering most parts of the country in the past few days brought cheers to the investors.
According to analysts, the upward trend is likely to persist in the near future as indicated by significant breakouts on high timeframe charts.
“Due to the rapid surge in recent sessions, indicators are entering an overbought zone, and with prices deviating significantly from the 5EMA on the daily chart, there is a possibility of occasional dips or sideways consolidation. In such a scenario, it is advisable for traders to take some profits and view any dip as a buying opportunity. The immediate support level has shifted higher towards 19,000, while the immediate reciprocal retracement targets come around 19,440 – 19,500 levels,” said Rajesh Bhosale, Technical Analyst, Angel One Ltd.
Bhosale advised to avoid complacency and be selective in stock choices.
