1st April 2024, the Indian stock market started a new financial year (FY25) with a bang! Both the benchmark indices, Sensex and Nifty, have registered an all-time high amidst positive Asian cures and sustained foreign fund inflows.
Continuing its winning streak for the third consecutive day, a 30-share index representing leading companies in India, surged by a significant 556.98 points to touch an intraday high of 74,254.62. Simultaneously, the broader Nifty 50, which tracks the performance of the 50 largest companies listed on the National Stock Exchange (NSE), climbed 192.1 points to reach an intraday peak of 22,529.95. These numbers mark the highest points ever recorded by both indices.
Several pioneering companies within the Sensex basket fueled the market rally. JW Steel, Tata Steel, Kotak Mahindra Bank, HDFC Bank, Tata Motors, and Larsen & Toubro came forward as the main gainers, their share prices experiencing significant growth.
Positive sentiment across Asian markets further congratulated the Indian market’s performance. Seoul and Shanghai witnessed gains, while Tokyo, the only major Asian market opposed the trend and closed at the lower mark. Notably, Wall Street ended the previous week on a mixed note, with some indices closing higher and others closing lower.
Foreign Institutional Investors (FIIs), continued their buying spree. As per the exchange data, FIIs net purchases equities worth Rs 188.31 crore on the last trading day before the holiday week. These FIIs play a crucial role in the Indian stock market and currently contributing to the market’s bullins momentum.
Global oil prices also played a part in market sentiment. The benchmark Brent crude oil prices witnessed a slight increase of 0.37% to settle at $87.32 per barrel. This stability in oil prices instilled confidence in investors.
It is important to note this record-breaking start to FY25 comes on the heels of a remarkable performance in the previous financial year (FY24). The BSE Sensex witnessed a substantial jump of 14,659.83 points, translating to a growth of 24.85%. The Nifty also performed exceptionally well, soaring by 2467.15 points, a commendable increase of 28.61 %
Commenting on the market’s performance, VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services, attributed the rally to the market’s “bullish undertone” and the opening momentum. He highlighted the positive sentiment prevailing in the market.
Sameet Chavan, Chief Analyst-Technical & Derivatives at Angel One, provided a teaching outlook for the Nifty 50:” On the daily chart, prices remained within a defined range, concluding near the upper boundary as we approach the significant day of the monthly expiry, coinciding with the financial year-end. Going ahead to the next session, 22200 stands as a pivotal level to monitor; a sustained breach beyond this point could catalyze a robust upward movement, establishing a sturdy foundation for the market in the new month. Conversely, recent sessions have seen buy-ins during intraday dips, indicating potential support levels around the 22000 – 21950 zone for the upcoming session.”
Om Mehra, Technical Analyst at SAMCO Securities, offered insights into the Bank Nifty’s prospects: “Bank Nifty closed the session at 46,785.95 after gaining 0.40% and has formed a bullish candle on the daily chart. The Index rebounded from the 20-day moving average (DMA) but faced resistance around the 47,000 zone. Fibonacci retracement reveals support at 46,350 levels and resistance at 47,300 levels.”
Siddhartha Khemka of Motilal Oswal shared his expectations for the broader market: “We expect the market to continue its positive momentum with a focus on large-cap stocks. With the start of the election in April, we believe government-centric stocks to be in focus. Auto stocks are likely to be in the limelight next week amid the release of monthly Auto sales numbers.”
This record-breaking achievement by the Indiann stock market in the begining of FY25 clearly a promising sign, but be aware that stock market has a volatile nature and before investing your should get in touch with an expert, or conduct a through research to save yourself from any loses.
The Indian stock market’s record-breaking start to FY25 is a promising sign, but remember that the market has a volatile nature. Investors should conduct thorough research, consider expert insights, and exercise caution before making investment decisions.
