Sensex, Nifty at record highs as financials lead gains

The NSE Nifty 50 index climbed by 0.47 per cent to reach 19,413.50, while the S&P BSE Sensex jumped 0.59 per cent to 65,586.60 as of 9:17 am.

Domestic markets opened on a strong note on Tuesday.

Domestic stock markets began the trading session on a positive note on Tuesday, with broad-based gains driven by the financial sector.

The NSE Nifty 50 index climbed by 0.47 per cent to reach 19,413.50, while the S&P BSE Sensex jumped 0.59 per cent to 65,586.60 as of 9:17 am.

Both benchmark indices have continued their record-breaking streak, hitting new highs for four consecutive sessions.

According to Om Mehra, a research analyst at Choice, the markets were expected to open flat after achieving lifetime highs. However, Wall Street managed to secure marginal gains ahead of the Independence Day holiday, offering some positive cues.

One of the reasons driving strong sentiments on the domestic stock markets is sustained buying by foreign investors.

Data from the National Stock Exchange (NSE) revealed that foreign institutional investors (FIIs) accumulated stocks worth Rs 1,995.92 crore, while domestic institutional investors (DIIs) turned net sellers and offloaded equities worth Rs 337.80 crore.

However, Mehra said banking stocks may experience volatility over the next few days, particularly due to potential mergers involving HDFC and IDFC.

“The Nifty has shown substantial gains of over 600 points in the past four trading sessions, accompanied by significant gaps in the Bank Nifty,” he added.

“While the market may witness consolidation after the recent surge, specific stocks could still exhibit movement. Investors are advised to exercise caution and avoid taking overly aggressive long or short positions in the current scenario.”