No Monday Blues: Nifty and Sensex Set New Highs as Market Euphoria Continues

On Monday, September 23, 2024, the Indian stock market saw no sign of slowing down, with both the Nifty 50 and Sensex reaching fresh record highs. The Nifty 50 surged to a new all-time high of 25,956, while the Sensex crossed an impressive 84,980.53. The Bank Nifty also followed suit, hitting a new peak of 54,197.95, reflecting strong investor sentiment driven by recent global financial developments.

Fed Rate Cut Fuels Rally

The continued rally can largely be attributed to the US Federal Reserve’s recent rate cut, which has spurred optimism among Indian investors. Analysts have pointed out that this rally is supported by foreign institutional investors (FII) pumping liquidity into the markets. As the global banking landscape shifts towards easier monetary policies, particularly after the Fed's decision, Indian markets are seeing a ripple effect of positivity, despite looming concerns around geopolitical risks and a slowdown in regions like China and the Eurozone.

According to Vinod Nair, Head of Research at Geojit Financial Services, "Benign input costs and the anticipation of a change in stance by the RBI may provide further tailwinds to valuation." Meanwhile, Gaurav Garg from Lemonn Markets Desk remarked, "Benchmarks have hit new highs every day since the Fed's decision last week, as central banks ease interest rates despite rising risks in the Middle East."

Key Stocks to Watch on Tuesday

As investors look ahead to Tuesday's trading session, several key stocks are expected to be in focus. Here's a look at eight stocks worth watching:

1. G R Infraprojects

G R Infraprojects emerged as the lowest bidder for a metro viaduct project worth Rs 903.5 crore. The project is expected to last 30 months, adding a substantial pipeline of work for the company.

2. Indian Refining Companies

In a significant development, Indian refiners canceled 100,000 metric tons of palm oil purchases for delivery between October and December. The move follows New Delhi’s decision to raise import duties on palm oil due to rising overseas prices.

3. Vodafone Idea

Following a Supreme Court ruling that didn’t favor it in the Adjusted Gross Revenue (AGR) case, Vodafone Idea has initiated fresh talks with the government to seek relief. CEO Akshaya Moondra discussed the company’s future course of action during an analyst meeting.

4. Punjab National Bank (PNB)

PNB plans to launch a qualified institutional placement (QIP) within a week, aiming to raise between Rs 5,000 crore and Rs 7,500 crore through equity issuance. This move is expected to strengthen its capital base and support its future growth plans.

5. NTPC Green Energy

The green energy arm of NTPC is preparing for a Rs 10,000 crore IPO, scheduled for the first week of November. The company will conduct roadshows in major global financial hubs like Mumbai, London, and Singapore to attract potential investors.

6. Arkade Developers

The market is eagerly awaiting the listing of Arkade Developers, expected to debut on Tuesday. This listing, alongside Northern Arc Capital and Western Carriers, is expected to garner significant investor interest.

7. Bharti Airtel

With its consistent performance, Bharti Airtel continues to be one of the major contributors to the recent Nifty 50 rally. Investors are keen to see if this momentum will sustain in the coming sessions.

8. M&M (Mahindra & Mahindra)

M&M has been one of the top Nifty gainers in five out of the last six trading sessions, driven by positive earnings growth and increased demand in the auto sector.

Looking Forward: Market Sentiment and Investor Outlook

As the market continues its upward momentum, volatility has also increased. The India VIX, a gauge for market volatility, jumped by 7.74% to 13.78 on Monday. This rise indicates that while optimism remains, investors are also preparing for potential fluctuations.

The upcoming RBI monetary policy decision and the trajectory of global geopolitical risks—especially in the Middle East—are expected to play pivotal roles in shaping market sentiment. In the near term, however, the influx of liquidity and positive sentiment stemming from the Fed’s rate cut may continue to propel the market to new heights.

For investors, keeping an eye on the Fed rally, QIP offerings, and IPO debuts in the secondary market will be crucial in navigating the current market dynamics.