Nifty and Sensex hit record highs on June 19 in the opening trade, bolstered by positive global market trends and investor optimism surrounding the upcoming budget. Banks and the healthcare sector led the gains in Nifty 50 while the construction and consumer durables segments declined.
At 9.55 AM, the Sensex was up 177 points or 0.2 percent at 77,478 and the Nifty 50 was up 25 points or 0.1 percent at 23,583. About 1,362 shares advanced, 1,737 declined, and 85 remained unchanged.
In terms of individual stocks, ICICI Bank, HDFC Bank, and Axis Bank were the major contributors to the gains in Nifty 50, rising 1-2 percent. Meanwhile, Bharti Airtel, Titan, and L&T fell 1-3 percent.
Ajit Mishra, SVP of Research at Religare Broking, highlighted two major areas the market will be eyeing in the budget.
"In the interim budget (Feb 1, 2024) itself, the government has made critical announcements regarding capital expenditure and other initiatives. The market will closely watch their stance on fiscal deficit, especially post-election. If they plan to implement populist measures and utilize funds for those instead of maintaining the fiscal deficit target at 5 percent, that will be a key focus for the market," he said. "Additionally, any tinkering in the capital gains tax will also be closely monitored," Mishra added.
Finance Minister Nirmala Sitharaman will likely present the full Union Budget in July.
The banking sector shined today with Nifty Bank rising nearly 1 percent. IndusInd Bank rose over 2 percent after global brokerage firm Bernstein initiated coverage on the stock with an 'Outperform' rating. Bernstein also initiated coverage on Bajaj Finance and Muthoot Finance, citing robust credit growth and favorable asset quality.
In the broader market, the BSE Midcap and Smallcap indices declined by 0.3 percent and 0.6 percent, respectively.
In the immediate term, Nifty may rise to around 23,700 to 23,800, said Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates. "On the downside, Nifty finds immediate support near 23,400, followed by last week's low of 23,200," he added.
Vinod Nair, Head of Research at Geojit Financial Services, stated that the Indian market is gradually building on the gains achieved following the national election. Market experts expect the positive momentum to persist and drive progressively the benchmarks higher.
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