Indian Stock Market Hits New All-Time Highs

On Thursday, September 26, the Indian stock market reached new all-time highs, with the Sensex and Nifty 50 both rising nearly 1%. Key gains were driven by major automakers like Mahindra and Mahindra, Maruti Suzuki, and Tata Motors.

Record Closing Numbers

The Sensex set a new record of 85,930.43 before closing at 85,836.12, up 0.78%. The Nifty 50 also hit a peak at 26,250.90 but ended the day at 26,216.05, a rise of 0.81%. While large-cap stocks led the gains, mid- and small-cap stocks showed less momentum, with the BSE Midcap index remaining flat and the BSE Smallcap index dropping by 0.39%.

Market Capitalization Increase

The total market value of companies listed on the BSE increased to Rs. 477 lakh crore from Rs. 475 lakh crore, adding approximately Rs. 2 lakh crore in a single day to investors’ wealth.

Stocks Reaching New Highs

A total of 257 stocks, including ITC, NTPC, and Bharti Airtel, achieved fresh 52-week highs during intraday trading on the BSE.

Reasons for the Rise

The stock market's upward movement was supported by positive global signals and gains in key sectors such as automotive and FMCG, coinciding with the monthly derivatives expiry. Top contributors to the Nifty’s rise included Maruti Suzuki, Mahindra and Mahindra, and Reliance Industries.

Sector Performance

The Nifty Auto index surged by 2.26%, while the Nifty Metal index rose by 2.13%.

Investor Confidence

Vinod Nair, Head of Research at Geojit Financial Services, noted that China’s recent economic stimulus announcement boosted investor confidence and created positive momentum in global markets. This optimism is also reflected in expectations of strong corporate earnings for the latter half of FY25, supported by anticipated government spending.

Global Market Influence

Asian and European markets were also performing well due to China’s economic measures and the start of a rate-cut cycle in the US, further enhancing market sentiment.

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Investor Activity

Prashanth Tapse from Mehta Equities highlighted that the combination of monthly position adjustments by investors and positive cues from global markets led to the significant gains in the Sensex and Nifty.