Sensex closes at record high for third day; HDFC, SBI, Reliance outshines

For the third consecutive day, the BSE Sensex surged, closing at an all-time high due to continued optimism over the US Federal Reserve's anticipated rate cut. The 30-share index rose by 384.30 points, or 0.45%, to settle at a new peak of 84,928.61. Earlier in the day, it reached a lifetime intra-day high of 84,980.53, gaining 436.22 points or 0.51%.

The NSE Nifty also followed suit, increasing by 148.10 points, or 0.57%, to close at a record 25,939.05. It reached an intra-day high of 25,956, soaring 165.05 points or 0.63%.

Vinod Nair, Head of Research at Geojit Financial Services, stated, "The euphoria from the FED rate cut continued to lift the domestic market. Despite a moderation in India PMI data, investors are hopeful that the influx of liquidity from FIIs will stabilize market sentiment."

Among the 30 Sensex firms, Mahindra & Mahindra led the gains with a 3.29% increase. State Bank of India, Bharti Airtel, and Kotak Mahindra Bank also saw significant rises of 2.55%, 2.25%, and 1.71% respectively. Other major contributors included HDFC Bank, Reliance Industries, and Hindustan Unilever.

ICICI Bank experienced the most significant drop, falling by 1.25%, limiting the Sensex gains. Other laggards included IndusInd Bank, Asian Paints, Tech Mahindra, Infosys, HCL Technologies, Tata Consultancy Services, and Larsen & Toubro.

Amit Golia, CEO of MarketsMojo Group, commented, "The US Federal Reserve's decision to cut rates by 50 basis points indicates a global shift in monetary policy, with its effects reverberating in markets worldwide, including India."

The BSE midcap and smallcap indices both rose by 0.73%. Sector-wise, oil & gas led the gains with a 2.23% increase, followed by realty at 2.07%, telecommunication at 1.93%, energy at 1.80%, auto at 1.46%, consumer durables at 1.39%, consumer discretionary at 1.22%, and utilities at 0.92%. The BSE IT index was the only sector to decline.

Ajit Mishra, SVP of Research at Religare Broking Ltd, noted, "The prevailing optimism in global markets is driving this trend, and it is likely to continue in the absence of significant domestic triggers."

Out of the total stocks traded on the BSE, 2,382 advanced, 1,731 declined, and 120 remained unchanged.

In Asia, markets in Seoul and Shanghai closed higher, while Hong Kong ended lower. Japanese markets were closed for a holiday. European markets showed mixed trends, and the US markets ended on a mixed note on Friday.

The global oil benchmark, Brent crude, climbed 0.09% to $74.55 a barrel.

On Friday, the BSE benchmark had jumped 1,359.51 points, or 1.63%, to close at an all-time high of 84,544.31. During the session, it hit an intra-day peak of 84,694.46, gaining 1,509.66 points or 1.81%. The NSE Nifty also surged, closing at a record 25,790.95, up by 375.15 points or 1.48%.

Three-Day Market Rally Adds ₹8.30 Lakh Crore to Investors' Wealth

Over the past three days, the market rally has added ₹8.30 lakh crore to investors' wealth amid ongoing optimism over the US Fed rate cut. The Sensex has jumped 1,980.38 points or 2.38% in this period.

The market capitalization of BSE-listed firms surged by ₹8,30,975.85 crore to ₹4,76,03,923.17 crore ($5.70 trillion) in three days.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said, "Investors extended their buying support for the third straight session as benchmark indices hit fresh highs amid gains in telecom, banking, realty, and oil & gas shares."

Foreign Institutional Investors (FIIs) purchased equities worth ₹14,064.05 crore on Friday, according to exchange data.

Overall, the robust market performance reflects the investors' positive outlook driven by favorable global monetary policies and solid sectoral gains.