NSE Nifty Hits All Time High: Market Optimism Surges on Global Cues

NSE Nifty Hits Record High: Market Rises on Global Optimism

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: May 03, 2024

The NSE Nifty reached a new all-time high on March 3, shortly after the market began, with favorable global signs driving market optimism. The Nifty gained 146 points and reached its career peak of 22,794.70. Meanwhile, the BSE Sensex rose by 385 points, surpassing the 75,000 level.

The top stocks fueling the NSE rally are Bajaj Finance, Bajaj Finserv, ONGC, NTPC, and Shriram Finance, while Adani Enterprises, Bharti Airtel, Hero Moto Corp, and Maruthi Suzuki are among the index's top losses.

Bajaj Finance and Bajaj Finserv's positive momentum, rising 7.5%, is driven by the Reserve Bank of India easing limitations on Bajaj Finance's lending products, allowing it to continue sanctioning and disbursing loans in formerly restricted business areas.

Previously, the central bank banned Bajaj Finance from offering loans through its eCOM and Insta EMI Card lending products, claiming a violation of digital lending norms. The ban was removed on Wednesday after Bajaj Finance acknowledged that the company had made the necessary regulatory revisions.

Positive global markets

The Indian stock market is mirroring a worldwide stock rally following the Federal Reserve's announcement of an interruption in interest rate rises.

According to Vishnu Kant Upadhyay, Assistant Vice President of Research at Master Capital Services, easing Middle Eastern tensions, combined with solid domestic earnings data, created optimism and boosted purchasing among traders.

The MSCI Asia ex-Japan index has risen 1.1%, indicating an upward trend throughout Asian markets. Wall Street also saw gains overnight following Fed Chair Powell's remarks on Wednesday, which suggested that more interest rate hikes are unattainable.

However, analysts warn that ongoing high interest rates in the United States may result in foreign outflows from India. This fear comes amid news that foreign institutional investors sold Indian shares for ₹964 crore on Thursday. Yet domestic institutional investors offered a buffer by buying shares worth ₹13.52 billion on a net basis.

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