Nifty Hits Record 26,340; Sensex Jumps 573 Points on Broad Gains

Market Hits New Peak

Indian equity benchmarks surged to new lifetime highs on Friday, continuing their upward momentum for a third consecutive session. The NSE Nifty 50 crossed the 26,300 mark for the first time, while the BSE Sensex gained over 570 points. The rally was broad-based, fueled by robust buying in banking, power, and metal stocks, strong domestic institutional investment, and positive cues from Asian markets.

A Day of Records

The 50-share NSE Nifty climbed 182 points, or 0.70%, to close at 26,328.55. During the trading session, it surged 193.45 points to reach an all-time intraday peak of 26,340. Similarly, the 30-share BSE Sensex jumped 573.41 points, or 0.67%, to settle at 85,762.01. Its intraday high was 85,812.27. The positive market sentiment was reflected in the overall market breadth, with 2,772 stocks advancing on the BSE, while 1,449 declined.

Key Drivers of the Rally

Several factors contributed to the market's strong performance. Unabated capital infusion by Domestic Institutional Investors (DIIs) provided significant support, countering the selling pressure from Foreign Institutional Investors (FIIs). According to exchange data, DIIs purchased equities worth ₹1,525.89 crore, while FIIs offloaded shares worth ₹3,268.60 crore on Thursday.

Positive sentiment was also bolstered by healthy auto sales figures for December and optimistic business updates from banks. Analysts noted that investor focus is now shifting towards the upcoming Q3 earnings season, which is expected to guide the market's direction in the near term. Vinod Nair, Head of Research at Geojit Investments Limited, stated, "Investor sentiment remains broadly constructive as attention turns to Q3 earnings, which are expected to guide near-term market direction."

Sectoral Performance: Gainers and Laggards

The rally was led by strong performance across multiple sectors. The BSE utilities index surged 2.71%, followed by power (2.26%), energy (1.58%), PSU bank (1.53%), realty (1.46%), metal (1.46%), and auto (1.04%). Top gainers among the Sensex firms included NTPC, Trent, Bajaj Finance, Power Grid, Maruti, and State Bank of India.

In stark contrast, the BSE FMCG index was the only sectoral loser. This was primarily due to a sharp fall in tobacco stocks after the government announced an additional excise duty effective February 1. ITC emerged as the biggest laggard on both the Sensex and Nifty, with its stock tumbling 5.11% during the day to hit a 52-week low of ₹345.35, before closing 3.79% lower at ₹350.15. Other tobacco stocks like Godfrey Phillips and VST Industries also ended the day with losses.

Broader Market and Global Cues

The positive momentum was not limited to the main indices. The BSE midcap gauge jumped 0.97%, and the smallcap index climbed 0.79%, indicating widespread buying interest.

Global markets provided a supportive backdrop. In Asia, South Korea's Kospi and Hong Kong's Hang Seng indices ended significantly higher, while markets in China and Japan were closed for holidays. European markets were also trading in positive territory during mid-session deals. Meanwhile, Brent crude, the global oil benchmark, saw a slight decline of 0.36% to USD 60.63 per barrel.

Market Performance Summary

Outlook

Analysts maintain a constructive outlook on the market, supported by stable domestic fundamentals and expectations of strong corporate earnings. Ajit Mishra, SVP of Research at Religare Broking Ltd, commented that select index heavyweights provided crucial support, enabling the market to sustain its upward momentum. With the Q3 earnings season on the horizon, investor focus will likely remain on corporate performance and management commentary for future guidance.