Sensex and Nifty reached new highs, driven by NTPC and ICICI Bank

Summary: The Sensex surged 417 points to 81,749, while the Nifty 50 index advanced 146 points to 24,980.

Indian market indexes rose to fresh highs on Monday, boosted by increases in major firms including ICICI Bank, Infosys, Reliance Industries, Larsen & Toubro, Tata Consultancy Services, NTPC, and the State Bank of India. Positive indications from other Asian markets also fueled the rally. The Sensex surged 417 points to 81,749, while the Nifty 50 index advanced 146 points to 24,980, barely 20 points short of the crucial 25,000 level.

As of 9:20 a.m., the Sensex had risen 322 points to 81,658, while the Nifty 50 index had gained 104 points to 34,938.

Most Asian stocks rose significantly on Monday, with investors looking to the Federal Reserve's next meeting for clues on probable interest rate reductions. The technology sector, which had been severely impacted in previous weeks, led the increases.

Regional stocks responded well to Wall Street's strong finish on Friday. The likelihood that the Federal Reserve will lower interest rates later this year has increased due to indications of reducing inflation. This expectation led to a rise in US stock index futures during Asian trading hours.

At the end of a two-day meeting on Wednesday, the Federal Reserve is anticipated to maintain standing rates. However, given the upbeat remarks made by Fed officials, any indications on the possible timing of rate reductions will be eagerly watched.

With strong loan growth and solid core lending income, the country's second-largest private lender, ICICI Bank, recorded larger-than-expected first-quarter earnings on Saturday, making it one of the Nifty's top gainers, gaining as much as 2.42 percent to Rs 1,237.

In the April-June quarter, the Mumbai-based lender's standalone net profit increased 14.6% to a record Rs 11,060 crore.

After reporting a 12% increase in consolidated net profit at Rs 5,506.07 crore for the June quarter, primarily due to greater revenues, NTPC climbed 3% to reach a record high of Rs 408.30.

Its net profit for the same time last year was Rs 4,907.13 crore, the company reported in an exchange filing. Moreover, there were increases of 0.7% to 2% at Bharat Petroleum, IndusInd Bank, State Bank of India, Tata Motors, Ultratech Cement, ONGC, Adani Enterprises, and Maruti Suzuki.

On the contrary, the companies that suffered losses included Cipla, Bharti Airtel, Titan, Dr. Reddy's Laboratories, and Tech Mahindra.

Except for the FMCG share measure, all of the main sector gauges compiled by the National Stock Exchange showed signs of buying, with the Nifty PSU Bank index showing a gain of 2.4%. The Nifty IT, Media, Oil & Gas, Private Bank, and Bank indices all saw increases of 0.7% to 1.5%.

The Nifty Midcap 100 index increased 0.65% and the Nifty Smallcap 100 index increased 1.2%, indicating that purchasing demand was also present in wider markets.

There was a very strong overall market breadth, with 2,396 shares on the BSE rising and 884 shares falling.

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