AMN
India’s benchmark indices continued their upward momentum, with both the Sensex and Nifty reaching record highs for the sixth consecutive session on Thursday, driven by gains in auto and banking stocks.
The Sensex surged 666.25 points, or 0.78 percent, to close at 85,836.12, while the Nifty added 211.80 points, or 0.81 percent, to settle at 26,216.
Market breadth was mixed, with 1,603 shares advancing, 2,200 shares declining, and 102 remaining unchanged.
Among the top performers on the Nifty were Maruti Suzuki, Tata Motors, Shriram Finance, Grasim Industries, and M&M. In contrast, shares of ONGC, Cipla, NTPC, Hero MotoCorp, and L&T were among the worst performers.
Sector-wise, the auto and metal indices each gained 2 percent, while FMCG and PSU Bank indices rose 1 percent. However, the capital goods index dipped by 0.6 percent.
The BSE Midcap index ended the day flat, and the Smallcap index declined by 0.4 percent.
The US Federal Reserve’s decision to loosen interest rates by a steep 50 basis points has provided fresh momentum to Indian stocks. A reduction in US rates typically encourages capital flows to markets with higher policy rates.
With a more pronounced rate cut in the US, there is a greater inclination for capital to seek alternative investment destinations, including India.
The ongoing buying by foreign portfolio investors (FPIs) has also contributed to the positive movement in stock indices. FPIs have increased their investments in India, drawn by the prospect of better returns due to the difference in interest rates.
Data from NSDL shows that FPIs have purchased Rs 49,459 crore worth of Indian stocks in September alone. This marks the fourth consecutive month of net buying by these investors.
