Stock Markets Start Week Strong, Nifty Hits Record High

Domestic markets maintained their bullish momentum on Tuesday, with both the Nifty 50 and BSE Sensex showing gains in the opening session. The Nifty 50 climbed 60 points to 23,529, while the BSE Sensex rose by 101 points, reaching 77,195 shortly after trading commenced.

With the exception of Nifty Pharma, Nifty Healthcare, and Nifty MidSmall Healthcare, all other sectoral indices began the week positively, advancing in the opening session. The markets had opened today following a closure on Monday for Eid-Al-Agha.

Ajay Bagga, a banking and market expert, commented, “The two big looking triggers are the complexion of the 100-day priorities of the new government and the Union Budget measures. The two big political developments will be the choice of the Speaker of the lower house of parliament, the Lok Sabha and the announcement of the BJP President.”

He also noted, “PSU companies, banks, capital goods, infrastructure, railways, defence stocks remain the preferred bets in the Indian markets.”

Among the top gainers in the Nifty 50 were Adani Enterprises, Wipro, Adani Ports, Mahindra and Mahindra, and Titan, all showing advances in the opening session. On the other hand, the top losers included Dr. Reddy’s, Maruti, TCS, HDFC Life, and Divis Labs.

Shares of Hindustan Aeronautics surged more than 4 percent on Tuesday after the company secured a Defence Ministry tender worth over Rs 45,000 crore for 156 Light Combat Helicopters.

In the broader market on the NSE, all indices, including Nifty 100, Nifty Next 50, Nifty Midcap, and Nifty Smallcap, exhibited gains in early trading on Tuesday.

In Asian markets, stocks advanced, buoyed by gains in US technology giants, although Chinese equities were pressured by a worsening housing slump in May. Australia’s central bank is anticipated to keep its benchmark rate at 4.35 percent, while US markets prepare for retail sales data and Federal Reserve speeches ahead of Wednesday’s holiday.

European stock markets fluctuated between gains and losses amid concerns over the upcoming French election, leading to the highest equity volatility since October. France’s index gained nearly 1 percent, while Germany’s index advanced 0.4 percent.

In the commodity market, gold slid 0.5 percent to USD 2320/ounce as traders looked for indications from US policymakers and economic data regarding the timing of Federal Reserve interest rate cuts. Brent crude rose 2 percent to a one-month high above USD 84/barrel on hopes of rising global demand and OPEC+’s agreement to extend supply cuts.