Stock market today: The BSE Sensex completed an impressive achievement today, reaching a new high of 80,375 after touching the 80,000 level on Wednesday. The 30-stock index rallied for the second straight session, a sign of robust global market confidence following the release of US Fed minutes. This buzz, which refers to speculation about a possible interest rate drop by the US Federal Reserve, has boosted worldwide markets. The leading Indian stock market index has reached a new record, rising 10,000 points in less than seven months, which is very astounding.
The BSE Sensex reached 70,000 on December 11, 2023. During Thursday's rise on Dalal Street, purchasing was seen across segments, while some Sensex-listed firms outperformed other Sensex stocks. Shares of ICICI Bank, Infosys, Tata Consultancy Services (TCS), HCL Technologies, Tata Motors, NTPC, and others rose more than 1% in the early morning session.
Why has the Sensex risen to a new high?
Siddhartha Khemka, Head of Retail Research at Motilal Oswal, commented on the Sensex's outlook today, saying, "Markets continued their ongoing streak of making new highs, supported by firm global trends." The Indian stock market welcomes US Fed Chair Powell's dovish comments. This, combined with good domestic economics and the prospect of a growth-focused budget, resulted in a favorable uptick in the Indian stock market today."
Speaking on the segments that may continue to drive the Sensex and other frontline indices to new highs, Sandeep Pandey, Founder of Basav Capital, stated, "Today we are seeing buying across segments, but in the long run, companies that have worked on expanding their Capex will be able to generate cash flow at a discounted price. So, my advice to Indian stock market investors is to focus on the banking, auto, IT, power, and manufacturing sectors, as they are projected to continue driving the frontline Indian indices."
The former Deputy Vice President of HDFC Bank believes that IT equities would continue to rise as US Fed officials signal a worldwide economic recovery. Similarly, excellent car stocks are likely to create alpha returns, or returns that outperform the market average, because they are related to the national economy, which is currently in a strong position. He stated that banks' NPAs have reached their lowest level in a decade, while GST collection has hit a record high. The market anticipates a growth-oriented budget to fill the power and manufacturing sectors.
Outlook for the Sensex
Speaking about the significant levels for the Sensex today, Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi, stated, "Sensex today is facing resistance near 80,700, but the 30-stock index has crucial support at 78,500 to 79,000 zone. If the frontline index closes over 80,700, we can expect the major benchmark index to hit 83,000 in the near term. However, if the index fails to overcome this barrier, it may fall by 4,000 to 1,500 points before the Union Budget 2024."
Budget 2024 is in Focus
Much will depend on the Union Budget 2024, which is anticipated this month. The market expects a growth-oriented budget, and Prime Minister Narendra Modi has hinted that economic reforms will reach new heights during the next five years. As a result, the market is expected to remain within a range. A unique method is proposed for Q1 results 2024, with the banking, auto, IT, electricity, and manufacturing areas in mind.
