Nifty 50 Hits New Peaks—What’s Behind the Capital Markets’ Radical Transformation?

At the close, the Nifty 50 was at 25,235.90 up by 0.33%

Today, 30 August 2024, the NSE Nifty 50 hit a notable milestone, closing up by 0.33% and surpassing the critical 25,200 mark. The Indian stock market reached record highs after a strong start, buoyed by gains from regional markets and positive U.S. economic data. This surge has set the stage for heightened anticipation around the latest domestic quarterly growth figures.

Benchmark equity indices wrapped up the week at all-time highs, thanks to robust buying across sectors. August ended on a high note, with the Nifty climbing above 25,200. The bulls dominated, starting Monday with a gap-up and extending their winning streak to a remarkable 12 consecutive trading sessions. The Nifty ended the day with a gain of 83.95 points, or 0.33%, closing at 25,235.90.

In this rally, eleven out of thirteen major sectors saw gains, with realty and pharma stocks playing a crucial role in lifting market sentiment. Small- and mid-cap indices also performed well, rising by about 0.5% each, outpacing the Nifty’s year-to-date performance. The India VIX, a gauge of market volatility, eased to 13.42, indicating a period of relative stability.

The bullish trend is set to continue, supported by strong market liquidity and earnings momentum. Despite a brief dip due to profit-taking, the market rebounded swiftly. Mid- and small-cap stocks showed resilience, reinforcing investor confidence.

As global markets react to anticipated US Federal Reserve rate cuts and a stronger dollar driven by healthy US GDP growth, the Indian market stays positive. But with moderate Q1 GDP growth expectations and high valuations, the big question remains: Will the Nifty’s rally keep soaring, or will new factors steer the market in a different direction?

Bank Nifty: Up by 0.39%

The Bank Nifty opened on a positive note, rising by 0.39% and closing at 51,351.00. This performance highlights continued investor confidence in the banking sector, underscoring a favorable outlook for financial stocks.

Similarly, the BSE Sensex also saw gains, climbing by 0.28% to close at an impressive high of 82,365.77.

In the sectorial landscape, the Realty sector led the way with a notable gain of 1.83%. Prestige Estates Projects Limited emerged as a top performer within this sector, with its share price climbing by 3.74%. Following closely, The Phoenix Mills Limited also recorded a solid gain of 3.23%, reflecting strong investor confidence in the real estate market.

On the other hand, the Media sector experienced a downturn, becoming the top loser with a decline of 0.36%. Network18 Media & Investments Limited was the hardest hit, suffering a significant drop of 5.26%. Nazara Technologies Limited also faced challenges, with its share price falling by 1.53%.

Foreign Institutional Investors (FIIs) demonstrated a robust net buy value of Rs. 5,318.14 crore, with a total buy value of Rs. 89,967.84 crore and sales amounting to Rs. 84,649.70 crore.

Conversely, Domestic Institutional Investors (DIIs) recorded a net sell value of Rs. 3,198.07 crore. They purchased shares worth Rs. 18,357.37 crore but sold off Rs. 21,555.44 crore.

Bank Nifty

The Nifty Banking sector had some gainers and some losers for the day.

The gainers included AU Bank with a 7.64% increase, Bandhan Bank with a 3.70% increase, IDFC First Bank with a 0.93% increase, ICICI Bank with a 0.83% increase, and IndusInd Bank with a 0.71% increase.

On the other hand, the biggest losers in the sector included HDFC Bank with a 0.78% decline, and Federal Bank with a 0.27% decline. These results suggest that most of the banking stocks performed better for the day.

Gold and Silver Rate (INR) 30th August, 2024

Stocks Highlights

Cipla Ltd. shares jumped 2.23%, from Rs 1,618.55 to Rs 1,654.60—a rare event, given that only 0.86% of trading sessions in the past 19 years have seen intraday gains over 5%.

Cipla’s strong financials tell the story: a solid 15.43% ROE for the year ending March 31, 2024, far ahead of its five-year average of 11.98%. With annual revenue growth of 14.17%, outpacing its three-year CAGR of 10.82%, Cipla is clearly on a steady growth path.

On the other hand, Tata Motors Ltd. saw its share price slip by 1.13%, dropping from Rs 1,121.65 to Rs 1,109.00. Yet, there’s more to the story. The company posted an impressive 36.97% ROE for the year ending March 31, 2024, a stark contrast to its five-year average of -1.07%.

However, a 9.74% drop in quarterly revenue—the lowest in three years—might raise eyebrows. Despite this, market bulls are hopeful, especially with a 14-day moving average crossover suggesting potential gains, as this pattern has historically led to an average price increase of 4.12% within a week.

Advance Decline Ratio

Today, the advance-decline ratio was 1.40, and the market breadth was positive. The volatility index India Vix decreased by 2.70 to settle at 13.42 and the FIIs were net buyers today.

DAILY MARKET ACTION
Advancers – 1563
Decliners – 1119
52Wk High – 140
52Wk Low – 20
High Band Hitters – 103
Low Band Hitters – 65
200d SMA – 22491
50d SMA – 24440
20d SMA – 24593

Top Gainers and Losers Stocks

The top gainers were Cipla (+2.23%), Bajaj Finance (+2.07%), M&M (+1.97%), Divi’s Laboratories (+1.84%), and NTPC (+1.78%).

The top losers were Tata Motors (-1.13%), HDFC Bank (-0.78%), Tech Mahindra (-0.72%), Coal India (-0.68%), and Reliance (-0.56%).

Top Gainers and Losers Sectors

The top gainers sector were Realty (+1.83%), Pharma (+1.48%), Auto (+0.59%), IT (+0.46%), and Oil & Gas (+0.30%).

The top losers sector were Media (-0.36%), and FMCG (-0.48%).

SECTORS – NOTABLE ACTION
REALTY +1.83%
PHARMA +1.48%
AUTO +0.59%
MEDIA -0.36%
FMCG -0.16%

Stocks Ban List

A stock enters the Ban List if its MWPL is above 95%. Implying that, Ban List shows the Futures and Options (FnO) stocks whose combined open interest in all FnO contracts for a given period crosses 95% of Market-Wide Position Limit.

Daily Pivots

As per the above pivots data, 25100 to 25400 is the Nifty 50 trading range.

Read Previous -Daily Insights- here
Nifty 50 Surges as Global Weakness Sparks Buying—Is a Steady Rise on the Horizon?
Is the Nifty’s Historic High Just the Beginning? Can It Shatter the Latest Barrier?

This article is only for educational purposes and is not an investment advice.