Sensex, Nifty hit record highs as financials and IT lead gains

The S&P BSE Sensex added 361.46 points to reach 82,147.02, while the NSE Nifty50 added 85.70 points at 25,138.05

by · India Today

In Short

  • Sensex, Nifty hit record highs on financial, IT stock rally
  • Indices rose 0.5%, Sensex at 82,147.02, Nifty50 at 25,138.05
  • DIIs net buyers in 17 of 19 trading days, invested ₹48,690 crore

Benchmark stock market indices surged to reach record highs after a rally in heavyweight financial and IT stocks.

Both indices increased by approximately 0.5% each, reaching record highs.

The S&P BSE Sensex added 361.46 points to reach 82,147.02, while the NSE Nifty50 added 85.70 points at 25,138.05 as of 1:50 PM.

"The positive trend in Indian markets is likely to persist as long as liquidity remains supportive. Investors are seizing every opportunity to buy on dips, capitalizing on the ongoing upward momentum," Samrat Dasgupta, CEO of Esquire Capital Investment Advisors told Reuters.

Domestic institutional investors (DIIs) have been net buyers of Indian stocks in 17 of the 19 trading days in August, accumulating around 48,690 crore (approximately $6 billion).

Dasgupta added, "The benchmarks could see further gains if U.S. inflation data on Friday is soft. Additionally, the financial sector might also benefit due to attractive valuations."

Out of the 13 major sectors, eight reported gains. The two largest sectors in the Nifty benchmarks, financial services and IT, each rose by about 0.6%.

In contrast, the broader indices for small- and mid-cap stocks fell by around 0.5% each, underperforming the benchmarks.

Asian markets and US equity futures declined, pressured by technology stocks after Nvidia's strong results failed to meet some investors' expectations.

Paytm gained 1% following government approval for its investment in its payments division.

Reliance Industries, the second-largest stock on the Nifty, rose 0.7% ahead of its annual general meeting. The conglomerate and Disney recently received approval for their $8.5 billion merger of Indian media assets.

Power Finance Corp and REC each increased by about 2% after UBS began coverage on these power financiers with "buy" ratings, citing robust growth prospects.