BSE Sensex Hits Record High: Financial and IT Stocks Drive Market Rally

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BSE Sensex Hits New Peak: Financial and IT Stocks Lead the Charge

Team FS

25/Jun/2024

Key Points:

Market Surge: BSE Sensex jumped 742 points, or 0.9%, to a new closing peak of 78,053.52.
Top Performers: Financial stocks, particularly Axis Bank, ICICI Bank, and HDFC Bank, led the rally.
Economic Outlook: RBI projects GDP growth slowing to 7.2% in the 2025 fiscal year from 8.2% in 2024.

The BSE Sensex surged by 742 points, or 0.9%, to close at a new record high of 78,053.52, having reached an intraday peak of 78,137 during the trading session. This impressive market performance was primarily driven by a significant rally in heavyweight financial and banking stocks, alongside notable gains in the IT sector.

Sector Performance

Leading the charge in the financial sector were Axis Bank, ICICI Bank, and HDFC Bank, with their shares climbing by 3.4%, 2.5%, and 2.3% respectively. These banks played a crucial role in propelling the Sensex to its new heights, reflecting strong investor confidence in their performance and outlook.

The IT sector also contributed positively to the market's rise, with Tech Mahindra gaining 1.8%. The resilience of IT stocks amidst broader market dynamics underscores their importance in the overall market ecosystem.

However, not all sectors fared as well. The realty, metal, and energy sectors ended the day in the red, highlighting a sectoral divergence in market performance. This variation underscores the selective nature of the current rally, driven mainly by financial and IT stocks.

Economic Outlook

As traders celebrate the new record high, attention is also focused on ongoing consultations regarding the country's budget for 2024-2025. These discussions are crucial as they shape expectations for economic policies and growth trajectories. The Reserve Bank of India (RBI) has projected a slowdown in GDP growth to 7.2% for the fiscal year 2025, down from an expansion of 8.2% in the fiscal year that ended in March 2024. This projected slowdown is significant for investors as it may influence market sentiment and investment strategies.

Global Market Influence

On the global stage, market participants are keenly awaiting the release of the US PCE inflation data scheduled for Friday. This data is pivotal as it will provide insights into the Federal Reserve's future monetary policy decisions. Inflation trends in the US are closely watched by global investors, given their potential impact on global financial markets, including emerging markets like India.

Conclusion

The new record high for the BSE Sensex highlights the strength and resilience of the Indian stock market, particularly driven by robust performances in the financial and IT sectors. As investors continue to navigate the complex landscape of economic indicators and global market influences, staying informed about key developments is crucial.

For continuous updates and in-depth analysis, follow our coverage on Indian stock market trends, sector performances, and the economic outlook. Keep an eye on the upcoming US inflation data and its potential implications for global and domestic markets.

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