Sensex and Nifty Reach New All-Time Highs on Strong Largecap Performance

The benchmark equity indices started Friday's trading session at fresh new highs. The BSE Sensex rose by 214.40 points, or 0.27%, reaching 79,457.58 in early trade, while the NSE Nifty 50 increased by 41.40 points, or 0.17%, to 24,085.90. The broader indices showed mixed performance. The Bank Nifty index opened at 52,874.95, up just 63.65 points, or 0.12%, from its opening position.

"Indian benchmark indices, Sensex and Nifty 50, are poised to open higher on Friday driven by positive global market cues. The Gift Nifty is indicating an initial premium, trading at approximately 24,200, up by about 105 points from the previous close of Nifty futures," said Varun Aggarwal, MD, Profit Idea.

On the NSE, the sectoral indices including Nifty Bank, Financial Services, FMCG, IT, Media, Metal, Pharma, Realty, Healthcare, Oil and Gas, and Consumer Durables all opened in positive territory.

Provisional data from the NSE indicates that on June 27, 2024, domestic institutional investors (DII) offloaded shares amounting to ₹3,605.93 crore. In contrast, foreign institutional investors (FII) acquired shares totaling ₹7,658.77 crore. 

During Thursday's trading session, both indices reached new closing highs. The Sensex rose by 568.93 points, or 0.72%, to close at 79,243.18. Similarly, the Nifty 50 increased by 175.70 points, or 0.74%, finishing at 24,044.50. 

Notably, the Nifty 50 exhibited a bullish trend with four consecutive sessions of long bull candles. Earlier in the week, it formed a 'three advancing soldiers' pattern, signifying strong upward momentum.

"The market sentiment remains positive, bolstered by the impending inclusion of India in the J.P. Morgan GBI-EM Global Series of indices starting June 28. This move is expected to attract substantial foreign inflows estimated between $25-30 billion over the next 10 months, gradually increasing India's weightage in the index," Aggarwal added.

Internationally, WTI crude prices are trading at $82.00, showing a slight rise of 0.23%, whereas Brent crude prices have decreased marginally to $85.45, a drop of 1.03%. Additionally, the US Dollar Index (DXY), which tracks the dollar against a basket of foreign currencies, has dipped slightly to 105.89, down by 0.15%.

In the US, market indices ended mixed on Thursday as traders remained cautious ahead of new inflation data. The NASDAQ Composite rose by 0.30%, closing at 17,858.68. Meanwhile, the S&P 500 and the Dow Jones Industrial Average both recorded modest gains of 0.09%, closing at 5,482.87 and 39,164.06, respectively.

Overall, the Indian markets are poised optimistically for the near term, provided that global economic conditions remain stable and investor sentiment continues to be positive.