Nifty records fresh high after longest winning streak in four years
IT companies that earn a chunk of their revenues from the US are likely to benefit from the rate cut. Investors will track macro data from the US and Eurozone for further cues. (Photo: Shutterstock)
The benchmark Nifty 50 index hit a fresh high on Wednesday by closing higher for the tenth consecutive session, marking its longest winning streak in four years, buoyed by continuing support from institutional investors and optimism of an imminent rate cut by the US Federal Reserve.
The index rose to 25,130 intraday before giving up some of the gains to end the session at 25,052, with a gain of 35 points, or 0.14 per cent, its longest winning streak since September-October 2020.
The Sensex added 74 points to end the session at 81,786, a gain of 0.09 per cent. The total market capitalisation of BSE-listed stocks rose Rs 85,000 crore to touch Rs 463 trillion, a new high.
Continuing support from domestic investors have helped the domestic markets sustain gains despite global headwinds.
Domestic institutional investors (DIIs) have been net buyers of Rs 48,347 crore so far this month.
In comparison, foreign portfolio investors (FPI) have pruned their selling and are net sellers worth Rs 3,805 crore.
The hope of a rate cut by the Federal Reserve after its chief Jerome Powell’s dovish speech last week at the Jackson Hole symposium has added to the optimism. However, elevated valuations have kept the upside under check.
“Valuation remains a near-term deterrent, which will be further tested based on the upcoming India Q1FY25 GDP data this week. On the other hand, investors are giving more emphasis to defensive bets, which is evident from the outperformance in IT and pharma stocks,” said Vinod Nair, head of research at Geojit Financial Services.
The market breadth was mixed, with 2,147 stocks declining and 1,815 advancing. Infosys, which gained 2.1 per cent, was the biggest contributor to Sensex gains.
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First Published: Aug 28 2024 | 7:17 PM IST
