Sensex, Nifty hit new record highs in early deals

Indian equity benchmarks made flat opening and soon gained some traction to hit fresh peaks as investors react to firm cues from other Asian markets and a sharp fall in crude prices overnight amid Libya supply concerns eased and China demand worries persisted. Sensex and Nifty are trading higher with decent gains in early deals led by buying in IT and TECK stocks. Sentiments got some boost as Organisation for Economic Co-operation and Development in its Interim Economic Outlook said that Indian economy will likely log faster growth at 6.7 percent in FY25 compared with 6.6 percent projected earlier. Some support also came as data released by the Ministry of Statistics and Programme Implementation showed that formal job creation picked up for the first four months of the FY25. However, investors remained on sidelines ahead of the F&O series expiry later in the day. Upside remained capped amid global geopolitical tensions as Israel prepares for a possible ground maneuver in Lebanon. Also, foreign fund outflows dampened sentiments. Foreign Institutional Investors (FII) offloaded shares worth Rs 973.94 crore on September 26, 2024.

On the global front, all the Asian markets are trading in green, following the mixed cues from Wall Street overnight, as the markets continue to react to the slew of stimulus measures announced by the Chinese central bank to boost the nation's economy. Increased bets for another super-sized interest rate cut at the US Fed's November meeting is also aiding market sentiment. 

Back home, Finance Minister Nirmala Sitharaman met Uzbekistan Deputy Prime Minister Jamshid Khodjaev to discuss a strategic partnership across multiple sectors. The meeting underscored the remarkable growth in India's digital payments ecosystem, opening avenues for cooperation between Uzbek and Indian fintech firms. In stock specific development, Piramal Pharma climbed after its Chairperson Nandini Piramal reveals plans to double revenue its revenue to $2 billion by FY30, while tripling its Ebitda. SpiceJet traded higher after its chairman Ajay Singh reveals plans to expand its fleet to 100 aircraft by 2026. 

The BSE Sensex is currently trading at 85309.89, up by 140.02 points or 0.16% after trading in a range of 85106.74 and 85372.17. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.58%, while Small cap index was down by 0.36%.

The top gaining sectoral indices on the BSE were IT up by 0.57%, TECK up by 0.54%, FMCG up by 0.30%, Auto up by 0.15% and Telecom up by 0.08%, while Consumer Durables down by 0.95%, Power down by 0.83%, Oil & Gas down by 0.80%, Utilities down by 0.73% and PSU down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.64%, Tata Motors up by 1.35%, Nestle up by 1.01%, Bharti Airtel up by 0.84% and HCL Technologies up by 0.81%. On the flip side, Power Grid down by 1.32%, NTPC down by 1.05%, Mahindra & Mahindra down by 0.80%, Kotak Mahindra Bank down by 0.41% and Titan Company down by 0.36% were the top losers.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) in its latest Interim Economic Outlook has said that Indian economy is likely log faster growth at 6.7 percent in fiscal year 2024-25 (FY25) compared with 6.6 percent projected earlier in May. It also noted that growth is expected to increase in FY26 to 6.8 percent, up 20 bps from its May forecast. It said solid domestic demand growth is projected to continue in India.

It said the global economy remained resilient in the first half of 2024, with output growing at an estimated annualised rate of 3.2%. It added domestic demand has buoyed activity in Brazil, India and Indonesia, but has slowed in Mexico with the services sector losing momentum. As per the report, the recovery in global trade continued in the first half of 2024, with growth in trade volumes in both goods and services strengthening, especially in the second quarter. An upturn in US import growth, in part due to stronger equipment investment, and greater trade dynamism in key emerging market economies, including China, the Dynamic Asian Economies, Brazil and India, were key factors behind the stronger-than expected resilience of trade.

It further said inflation in the emerging-market economies is projected to remain generally higher than in the advanced economies, while also easing gradually. On the inflation front, the OECD anticipated that prices to rise faster, at 4.5 percent, compared with its May projection of a 4.3 percent increase. However, it noted that prices will ease to 4.1 percent in FY26 from 4.2 projected earlier, which will be near to the RBI’s mid-point target of 4 percent.

The CNX Nifty is currently trading at 26039.35, up by 35.20 points or 0.14% after trading in a range of 25998.40 and 26057.90. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 2.58%, Tata Motors up by 1.39%, Tata Consumer Products up by 1.34%, SBI Life insurance up by 1.27% and Eicher Motors up by 1.17%. On the flip side, Hero MotoCorp down by 2.34%, ONGC down by 1.84%, Power Grid down by 1.39%, Mahindra & Mahindra down by 1.08% and NTPC down by 1.01% were the top losers.

All Asian markets are trading higher; Nikkei 225 surged 912.51 points or 2.41% to 38,782.77, Hang Seng jumped 443.35 points or 2.32% to 19,572.45, Taiwan Weighted rose 96.36 points or 0.42% to 22,857.96, KOSPI increased 52.24 points or 2.01% to 2,648.56, Shanghai Composite strengthened 18.43 points or 0.63% to 2,914.74, Straits Times added 15.74 points or 0.44% to 3,599.01 and Jakarta Composite was up by 2.7 points or 0.03% to 7,743.60.