Market rally hoists Sensex above 66,000 peak; Nifty hits new high

After the initial uptick, Nifty traded muted in the middle but a sharp surge in the last half an hour completely changed the tone. Most sectors ended higher with the IT pack leading the surge, followed by metal and realty stocks. The broader indices were also in sync and gained in the range of 1.2-1.5 per cent. “It is a firm close but we need sustainability above 19550 in Nifty for continuation of the up move. The prevailing buoyancy in global markets combined with rotational buying across sectors is favouring the same,” said Ajit Mishra, SVP – Technical Research, Religare Broking Ltd.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “The Nifty’s surge above the psychological 19500 mark is a significant milestone for the Indian market. With the continued positive catalysts, such as softer inflation readings in the US and expectations of a pause in rate hikes by the Fed, the bulls are likely to remain in control. Looking ahead, there is room for further upside, and we anticipate the Nifty to reach fresh all-time highs around the 20,000-mark in the near term.”

All indices ended in green with IT being an outlier (gains of 4.3 per cent), as most of the negatives have been priced in and valuation looks attractive at this juncture. Apart from IT, media and realty and metals too witnessed good gains. “Going ahead, the market would keenly watch out for merged HDFC Bank results on Monday which now holds 29 per cent weightage in Nifty Bank. As we fully enter into the quarterly earnings season, stock specific action would pick up steam. Moreover, expectation of good quarterly results, consistent FIIs buying interest and good progress on the monsoon front would keep the overall trend of the market positive,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

On the economy front, US June CPI print came in lower than expected at 3 per cent, while the Indian retail inflation print came in higher than expected at 4.8 per cent. In the US, the yield on the benchmark 10-year Treasury note rose 3 basis points to 3.7890 per cent, while the 2-year yield climbed 5 basis points to 4.6640 per cent. The June producer price index in the US was reported at a weaker-than-expected monthly rise of 0.1 per cent on both the headline and core metrics. That followed Wednesday’s consumer price index, which came in at an annualised 3 per cent for June, below consensus expectations and its lowest level since March 2021. In Europe, Germany said there is an urgent need for companies to de-risk from China, while “not pursuing a decoupling” of economies. In Asia, China reported no change in consumer prices for June from a year ago, said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd

“We reiterate our positive view and suggest focusing on identifying quality stocks across sectors,” said Mishra.

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