Bulls continue to advance: Sensex, Nifty extend gains to settle at record highs; Bajaj Auto gains 6%

Mumbai: The the Indian stock market continued its bullish run on September 15, 2023, with both the Sensex and Nifty indices closing at record highs. The Sensex gained 52.01 points, or 0.08%, to close at 67,519, while the Nifty 50 jumped 33.10 points, or 0.16%, to 20,103.10.

Bajaj Auto was the top gainer on the Nifty 50 index, surging 6% to a record high. Other major gainers included Hindalco, M&M, ONGC, Divis Lab, Eicher Motors, Tata Steel, Tech Mahindra, Apollo Hospital, Nestle India, PowerGrid, BPCL, and HCLTech.

Bulls continued their dominance at Dalal Street as benchmark indices managed to settle higher for another trading session. Sensex was just shy of 68,000-mark, while Nifty50 topped 20,200-level on Friday. Positive global cues and buying in select heavyweight sectors supported the market sentiments.

For the day, BSE’s barometer Sensex surged 319.63 points, or 0.47 per cent, to settle at 67,838.63, while NSE’s Nifty50 jumped 89.25 points, or 0.44 per cent, to end at 20,192.35. Broader markets underperformed the headline peers as BSE midcap and smallcap indices ended slightly lower. Fear gauge India VIX dropped about 4 per cent to 10.90-level.

On a sectoral front, the Nifty auto index gained about 2 per cent, whereas the Nifty IT index gained about a per cent each. Nifty pharma, private bank, financial services and consumer durable indices posted decent gains. Among the laggards, the Nifty oil & gas index dropped about a per cent, while the Nifty FMCG and realty indices also disappointed.

Besides firm global market cues, investors are anticipating a halt in rate hike by the US Federal Reserve in the next week’s policy meeting amid moderating inflation, which would augur well for local markets already witnessing a strong upsurge. A status quo on rate hikes would further bolster investors’ sentiment as this would give a further leg up to the economy on hopes of softening interest rate stance going ahead, said Amol Athawale, Vice President – Technical Research, Kotak Securities.

“On daily and weekly charts, the Nifty has formed a breakout continuation formation which is indicating that the uptrend wave is likely to continue in the near future. Although the larger texture of the market is bullish, the market is in temporarily overbought conditions, and hence we could see some profit booking at higher levels,” he said.

In the Nifty50 pack, Bajaj Auto surged more than 6 per cent after upgrade from BofA Securities. Hero MotoCorp and Mahindra & Mahindra gained more than 2 per cent each. Grasim Industries, HCL Technologies, Bharti Airtel and SBI Life Insurance Company were among other top gainers for the day.

Among the losers, Bharat Petroleum Corporation dropped about 2 per cent, while Hindustan Unilever and Asian Paints dropped over a per cent each. Britannia Industries, Tata Consumer Products, Bajaj Fiserv, ONGC and NTPC were among the other laggards for the day.

The market is inching towards a new direction with renewed buying in auto and IT stocks in expectation of strong festive demand and a strong deal win, said Vinod Nair, Head of Research at Geojit Financial Services.

“Better-than-expected economic data from China and stimulus hopes further added optimism in global markets. The ECB hinted at a potential pause in rates due to receding inflation, while investors are now focused on central bank meetings next week, with the U.S. FED, BoE, and BoJ set to announce their rate decisions,” he said.

A total of 3,786 shares were traded on BSE on Friday, of which 1,932 settled with gains. 1,701 stocks ended the session with cuts while 153 shares remained unchanged. A total of eight shares hit their upper circuit, whereas the five shares tested the lower circuit levels for the day.