Sensex, Nifty rally to new peaks as Moody’s revises India’s growth forecast to 7.2%

Benchmark stock market indices opened at record highs driven by positive global trends and Moody’s decision to raise India’s 2024 GDP growth forecast to 7.2%.

The S&P BSE Sensex climbed 502.42 points to 82,637.03, while the NSE Nifty50 rose 87.45 points to 25,239.40 by 9:20 AM. Additional support for the indices came from Mukesh Ambani’s AI-focused strategy for Reliance Industries, strong foreign institutional investor (FII) buying, and encouraging US GDP data.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the significant feature of the recent trend in the market is the lack of volatility.

“The market has been steadily climbing up during the last 11 trading sessions with volatility index VIX declining to 13.79. Continuation of accumulation of quality largecaps by the DIIs and HNIs and the FIIs reducing their selling significantly and buying on certain days have contributed to the resilience of the market,” he added.

“This near-term trend in the market is likely to continue. A breakout from the present can happen if the banking stocks witness big buying. But the struggle for deposits experienced by the banking system and the consequent feared pressure on margins are keeping the demand for banking stocks depressed despite attractive valuations. Largecaps are outperforming the broader market now. This is a healthy trend,” said Vijayakumar.